Critical Case Comment

By Kevin R. Anderson, Chapter 13 Trustee for the District of Utah

In re Cannella, No. 14-21398, 2015 WL 1208679 (Bankr. D. Kan., Aug. 12, 2014) (Berger). In performing the hypothetical liquidation analysis of 11 U.S.C. § 1325(a)(4), Chapter 13 attorney’s fees are deducted as a priority claim before estimating the return to non-priority unsecured creditors.

Factual Summary

On the petition date, the Debtors held $3,010 in cash, but their plan proposed a $0.00 return to unsecured creditors. The Trustee objected to confirmation under the best-interests-of . . .

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