Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)

When a case converts from Chapter 13 to Chapter 7 prior to the confirmation of a plan, the Chapter 13 Trustee is not permitted to divert funds from the debtor to the debtor’s attorney. In re Lettie, 597 B.R. 637 (Bankr. E.D Wis. 2019) (Hanan)

Case Summary

At the time the debtors realized that they could not confirm a Chapter 13 plan, debtors’ counsel sought to amend the fee application to pay those attorney’s fees through . . .

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