Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee (Nashville, TN)

A Chapter 13 trustee is not permitted to retain the trustee’s percentage fee on payments made in cases where a Chapter 13 plan is not confirmed; the trustee is under a statutory obligation to return all funds, including the trustee’s percentage fee, to the debtor. (Whipple) In re Lundy, 2017 WL 4404271 (Bankr. N.D. Ohio September 29, 2017)

Case Summary

The Lundys filed a Chapter 13 petition, pro se, and had a dispute with the Internal Revenue Service about the filing . . .

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