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ABI Journal

February 03, 2022

Trustee’s Counsel Is Paid Only for Services Requiring Legal Expertise

A successful outcome does not entitle an attorney to be paid for performing administrative services delegated to the trustee.

5th Circuit

January 28, 2022

‘13’ Trustees Are Paid Even if Dismissal Comes Before Confirmation, District Judge Says

A chapter 13 trustee is not a federal employee for the purposes of the Federal Tort Claims Act.

2nd Circuit, New York, New York Eastern District

January 20, 2022

Eleventh Circuit Takes Sides on Circuit Split by Upholding the 2018 Increase in U.S. Trustee Fees

On an issue the Supreme Court will decide this spring, the Eleventh Circuit broke the tie among the circuits by finding no unconstitutional lack of uniformity when the 2018 increase in U.S. Trustee fees was not immediately applicable in two states with Bankruptcy Administrators.

11th Circuit

January 12, 2022

Supreme Court to Resolve Circuit Split on the 2018 Increase in U.S. Trustee Fees

The Supreme Court granted certiorari to decide whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with Bankruptcy Administrators.

Supreme Court

December 30, 2021

May Accountants Limit Liability for Professional Malpractice? Stay Tuned

New Jersey judge says that professionals may not be able to limit liability when malpractice is more than mere negligence.

3rd Circuit, New Jersey

December 29, 2021

Although Unusual, Postpetition Retainers Are Permissible, Chicago Judge Says

The possibility that interim compensation allowances can be disgorged means that counsel won’t have an undue advantage over other administrative creditors, Judge Cleary says.

7th Circuit, Illinois, Illinois Northern District

December 13, 2021

On a Split, District Judge Doesn’t Pay ‘13’ Trustee if Dismissal Precedes Confirmation

District judge in Colorado sides with the majority and doesn’t allow a chapter 13 trustee to be paid if dismissal occurs before plan confirmation.

10th Circuit, Colorado

December 09, 2021

Government Urges Supreme Court to Review Constitutionality of the 2018 Increase in U.S. Trustee Fees

The U.S. Solicitor General wants the Supreme Court to resolve a circuit split and decide whether the increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with bankruptcy administrators.

Supreme Court

December 07, 2021

Judge Tells ‘13’ Debtors’ Counsel How to Write their Retention Agreements

Judge Jacobvitz told counsel for chapter 13 debtors how to write their engagement agreements to ensure being paid from funds held by the trustee if the case converts to chapter 7 before confirmation.

10th Circuit, New Mexico

October 25, 2021

Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal

The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.

10th Circuit, Oklahoma, Oklahoma Western District