Conflicting Interpretations: A Chapter 13 Trustee’s Compensation After Pre-Confirmation Dismissal or Conversion*Part 1 of 3

(Used with expressed permission from the MI Bankruptcy Journal and the Steven W. Rhodes Consumer Bankruptcy Conference)

I. Introduction

Although the Bankruptcy Code has been around for decades, bankruptcy courts continue to be faced with significant disputes regarding the interpretation of its provisions. An emerging issue that has gained traction in recent years involves the compensation of a chapter 13 trustee upon the dismissal or conversion of a case prior to confirmation.1 This issue turns on courts' interpretation of the seemingly conflicting directives of 28 U . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

AAA_4864
Judicial Law Clerk to the Hon. John T. Gregg, United States Bankruptcy Court for the Western District of Michigan

Brittani Bushman is ajudicial law clerk to the Hon. John T. Gregg in the United States Bankruptcy Court for the Western District of Michigan.She received her J.D. from Albany Law School and obtained an undergraduate degree in Family, Consumer and Human Development, with an emphasis in Family Finance from Utah State University. Ms. Bushman passed the July 2021 Uniform Bar Exam and her application for bar admission is pending.

While in law school, Ms. Bushman was a judicial extern for Judges Kevin R. Anderson,William T. Thurman, and Joel T. Marker at the United States Bankruptcy Court for the District of Utah, an intern at the United States Trustee office in Albany, New York, and a law clerk for Chapter 7 Trustee Marc Ehrlich in Troy, New York. She also received the prestigious Distinguished Bankruptcy Law Student Award for the Second Circuit from the American College of Bankruptcy.

Prior to law school, Brittani worked as a personal financial counselor and educator, where she advised numerous individuals and families on their financial circumstances and often helped her clients get out of debt, improve their credit, or evaluate the benefits of bankruptcy. This experience led Ms. Bushman to her interest in bankruptcy law.

Related Articles

October 24, 2021
By Jay S. Jump, CEO, CertificateofService.com (Pasco, WA) My guess is you initially saw the title of this article and promptly pressed right on past it. Who needs to learn how to properly address an envelope? You didn’t spend three years in law school plus all that money in student loans to address an envelope! But, If the purpose of...
Members
September 20, 2020
By The Honorable William Houston Brown (Retired) Chapter 13 debtors’ FDCPA claim was not “related to” bankruptcy case. After reopening closed case, the debtors filed adversary complaint against mortgage holders and servicers, alleging various claims for violation of discharge injunction, automatic stay and FDCPA. The complaint plausibly pleaded elements required for §§ 362(k) and 524(i), but the claims under FDCPA...
Members
rmichaelsmith
October 23, 2022
The recent push for student loan forgiveness has been met with increasing opposition. The rationales for not providing a generally applicable path for student loan forgiveness or cancellation have included arguments based upon imagined unfairness to those previously able to pay off their loans, which seems to be both short-sighted, as well as a “red herring” argument. It does not...
bledsoe150
August 27, 2023
The Eighth Circuit recently released its Topp opinion. At issue was the appropriate starting point for determining the discount rate to be used when paying secured claims under a chapter 12 plan. The debtor, who had gained confirmation of his plan before the bankruptcy court, proposed paying claims to Farm Credit Services over 20 years at a rate based on the...
Members
April 21, 2019
By Stacey A. O’Stafy, Staff Attorney, Office of the Chapter 13 Trustee Faye D. English (Columbus, OH) An above median Chapter 13 debtor settles a workers’ compensation claim and wants to use the exempt settlement proceeds1 to pay off her 100% dividend plan in month 38 – can she? In this simple scenario, the answer is yes. Pursuant to 11...
Members
September 20, 2020
By The Honorable William Houston Brown (Retired) Three-month delay in completing bare-bones petition. When the Chapter 13 debtor filed a skeletal petition, her motion for more time to complete schedules, statement and plan was denied, with no cause found for extending time after three-month delay, and show cause hearing was set to determine if case should be dismissed with 180-day...
Members
Copy of Hildebrand-2016
March 13, 2022
In order to invoke remedies granted under the CARES Act, Chapter 13 debtor need not have been current on the date of enactment as long as the debtor satisfies the conditions in the CARES Act. (Grabill) In re Gilbert, 622 BR 859 (Bankr. E.D. La. Oct. 6, 2020) Case Summary Chapter 13 Trustee sought dismissal of a number of cases...
Members
August 8, 2021
By Henry E. Hildebrand, III, Chapter 13 Trustee, Middle District of TN (Nashville) Chapter 13 trustee is not compelled to return the percentage fee taken from a Chapter 13 case when the case is dismissed prior to confirmation. Harmon v. McCallister, 2021 WL 3087744 (9th Cir. BAP July 20, 2021) (Gan) Case Summary Douglas and Christine Harmon filed a Chapter...
Members
ahern_larry_regular
December 4, 2022
Introduction This series reviews developments in bankruptcy procedure during 2022. Amendments to 16 rules and new one new rule take effect December 1, 2022, absent Congressional action. Many reflect changes necessitated by the Small Business Reorganization Act of 2019 (SBRA),1 and have been in place in the same or similar form on an interim basis since that legislation took effect.
Members
March 31, 2019
By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Debtor’s Attorney - Chapter 13 debtors not required to seek approval to employ special counsel. The Chapter 13 debtors moved to employ special counsel for representation in state-court litigation, but § 327(e) did not apply to Chapter 13 debtors when no request was being made to pay the special counsel from...
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: