The government has filed a petition for certiorari raising the question of whether refunds are the proper remedy following the Supreme Court’s Siegel decision finding that the 2018 increase in U.S. Trustee fees was unconstitutional.
The Ninth and Tenth Circuit disallow fees to chapter 13 trustee if the case is dismissed before confirmation. The identical issue is sub judice in the Second Circuit.
Affirming the bankruptcy court, the district court found that bifurcated fees are excessive and that inadequate disclosures violated Sections 526 and 528.
Within the next year, four circuits will have ruled on a split where some lower courts pay chapter 13 trustees and others don’t when dismissal precedes confirmation.