Procedures Governing Administrative Review of a United States Trustee’s Decision To Deny a Chapter 12 or Chapter 13 Standing Trustee’s Claim of Actual, Necessary Expenses

Introduction by Vijay Malik

A debtor’s bankruptcy filing under chapter 12 and 13 includes a plan whereby the debtor pays her creditors a percentage of the amount owed to them over a certain period of time.  Upon confirmation by the bankruptcy court, a standing trustee will administer the plan under the supervision of a regional United States Trustee.  Trustees incur expenses in administering the plan and are authorized to receive a certain percentage from the debtor’s plan payments to compensate for these costs.  Prior to payment, a trustee must obtain approval from the United States Trustee by submitting projected expenses for the fiscal year.  If the budget is approved, the trustee will be notified pursuant to 28 U.S.C. 586(e); if denied, under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a trustee has the right to obtain administrative review of their “claim of actual, necessary expenses” as outlined in 28 U.S.C. 586(e)(3).

BAPCPA requires trustees to exhaust all potential administrative remedies prior to seeking judicial review and the Department of Justice’s recently published Rule, effective June 30, 2011, attempts to ensure the review process is both fair and effective. Pursuant to the Rule, a trustee must request review within 21 days after receiving a notice of denial of expenses from the United States Trustee.  The United States Trustee must also respond to a trustee’s request for review within 21 days.  Moreover, the review process cannot be delayed without reason by setting long deadlines when the United States Trustee seeks to obtain additional information from the trustee.  To read the text of the Rule, in addition to public comments, please visit:

http://www.gpo.gov/fdsys/pkg/FR-2011-05-31/pdf/2011-12187.pdf


Vijary Malik
/>
Mr. Malik is a law student at Creighton University in Omaha, Nebraska. Prior to law school, Mr. Malik worked in real estate private equity and investing banking for various firms in New York and Washington, D.C.
No Author Biography has been linked to this Article.

Related Articles

March 24, 2019
By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Discharge - Section 523(a)(8)(A)(ii) does not include “loan.” Denying Navient’s motion to dismiss debtors’ complaint, reviewing the split of authority on whether § 523(a)(8)(A)(ii)’s “educational benefit” included loans, and finding no controlling authority in the Tenth Circuit, the Court concluded that Congress made a distinction between “loan” in § 523(a)(8)(A)(i) and...
Members
moran_cathy
August 1, 2023
By Cathy Moran, Moran Law Group (Redwood City, CA) Bankruptcy attorneys and their clients often seem to be a pair, divided by their common language. Even without legal jargon, we talk past each other. How do we misunderstand each other? Let me count the ways: Property: I don’t have any property, lost the house to foreclosure last year. Property 2:...
Members
Danielle headshot (2)
December 3, 2023
Attorney Gueck-Townsend provides readers with a primer on evidence needed to prove losses.
Members
April 26, 2020
(Items in italics have been added by Academy staff) . . . will be held virtually by ZOOM . . . Please visit our website at ch13pitt.com (this site has very detailed directions) for all of the details and instructions. A computer is not a necessity since ZOOM also allows participation by telephone (iphone, Android). Please visit the website before...
March 3, 2019
Travis Sasser practices bankruptcy law in Cary, North Carolina. He is a board certified specialist in Consumer Bankruptcy by the American Board of Certification and the North Carolina Board of Legal Specialization. He serves on the Bankruptcy Committee for the North Carolina Board of Legal Specialization. He is a member of ABI and NACBA. He graduated from the University of...
June 13, 2021
By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of TN (Nashville) In awarding attorneys’ fees in a Chapter 13 case, a court is not limited to establishing the fee by use of the lodestar method; fees for services rendered should be based on the reasonable and customary fees charged by other attorneys performing the same...
Members
November 7, 2021
By Sean G. O'Hair, Staff Attorney to Chapter 13 Standing Trustee Nancy Curry (Los Angeles, CA) Recent changes to the Handbook for Chapter 13 Standing Trustees promise to bring renewed scrutinyto the reasonableness of document requests by a chapter 13 trustee for documents that are not otherwise required to be provided by law.1 The basic idea appears to be that...
Members
April 4, 2021
The CARES Act, Public Law 116-136 had amended several parts of the Bankruptcy Code, but included sunset provisions terminating March 27, 2021. The COVID-19 Bankruptcy Relief Extension Act of 2021, H.R.1651, passed by the House and Senate and signed by the President on March 27, 2021, extended some provisions for another year. Section 1113 of the CARES Act had amended...
Mark
June 12, 2022
In this series of articles, I’ve described how my firm developed a litigation practice area to generate revenue that isn’t dependent on new bankruptcy cases. As debtor attorneys around the country wait for bankruptcy cases to return to pre-COVID levels, I hope these articles might inspire others to create income for themselves while obtaining valuable remedies for their clients. Today,...
Members
Copy of Hildebrand-2016
October 29, 2023
An interesting decision – one we would like for you to weigh in on. Did the Judge get it right? Is this a win for Creditors? Is this yet another case that requires more work from Debtors’ Counsel? Let us hear from you.
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: