Can a Chapter 13 Debtor Have Standing to Pursue Avoidance Actions? A Path May Remain Open for Debtor’s Counsel

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By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)

Bankruptcy practitioners know that every Chapter 7 or 13 case has a trustee appointed to administer the case. In Chapter 13, however, we also know that this is typically the standing trustee, who serves in all Chapter 13 cases before the court in a district.1 The trustee evaluates the case, potentially objecting to confirmation, but primarily serves as a disbursing agent, collecting payments from the debtor and making distributions to creditors. 11 U.S.C. § 1302(b). If there are liens or other transfers . . .

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