The Continuing Saga of Chapter 13 Trustee Fees in Pre-Confirmation Dismissals

Courts continue to wrestle with the issue of trustee fees in pre-confirmation dismissals. The Bankruptcy Court for the Northern District of Illinois has now weighed in in In re Johnson, 2023 WL 3406597 (Bankr. N.D. Il. 2023). 

The facts are pretty typical.  Debtor filed for Chapter 13. After 8 months and 8 confirmation hearings, the Court granted Trustee’s request for dismissal for “unreasonable delay” under § 1307(c)(1). One week after dismissal, Debtor filed a Motion to require the Trustee to disgorge the Trustee fee.  The Trustee . . .

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DeCarlo01
Attorney at Osipov Bigelman, PC (Southfield, MI)

Tom DeCarlo is an attorney at Osipov Bigelman, PC, in Southfield, Michigan. He has over 38 years of experience in bankruptcy, including a 17-year stint as a Staff Attorney to a Chapter 13 Standing Trustee in Detroit. He is a frequent contributor to ConsiderChapter13.org and a recurrent seminar speaker including the Annual Steven W. Rhodes Veteran’s Day Conference.

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