New Judge Appointed

More than just a question. Once again Cathy offers new and seasoned attorneys a “gotta keep this one” resource on statutes that refer to numbers of days.

In Marshall v Johnson, 2004 WL 1953490 (7th Cir. May 3, 2024), the Seventh Circuit agreed with the holdings from the Ninth and Tenth Circuits, In re Doll, 57 F.4th 1129 (10th Cir. 2023), and In re Evans, 69 F.4th 1101 (9th Cir. 2023). Under these decisions, Chapter 13 trustees may not retain fees when the case is dismissed prior to confirmation.

Consider the following Christmas miracle: Bob Cratchit has a long-term mortgage with Scrooge & Marley Bank. Bob Cratchit dies and there is a default on the mortgage. The mortgaged residence then passes to his son, Tiny Tim, by operation of law. Tiny Tim files for chapter 13 and includes the defaulted mortgage with Scrooge & Marley Bank in his plan. Scrooge & Marley Bank argues it has no claim against Tiny Tim because privity of contract is lacking, and Scrooge & Marley Bank therefore has no debtor-creditor relationship with Tiny Tim. How might the court rule?

The district’s “no-look” fee is just a guideline for the court to assess what is reasonable for a debtor’s attorney to charge for filing a Chapter 13 case: the debtor’s attorney seeking something beyond it must prove that the fee is justified.

We hope this is not the last we hear from Attorney Davis, but this article concludes our series on the means test. Watch for the webinar recording to post next week. Access is free to subscribers or $39.99 pay per view.