Chapter 13 Trustee Duties, Powers, And Limitations

Chapter 13 Trustee Duties, Powers, And Limitations – Part 6

By James J. Robinson, Chief United States Bankruptcy Judge, Northern District of Alabama

When do the trustee’s duties end, and who gets the money?

Harris v. Viegelahn, 135 S. Ct. 1829 (2015). This opinion of the unanimous Court requires the trustee to return to the debtor undistributed plan payments—originating from wages earned postpetition—on hand at a good-faith, post-confirmation conversion rather than distributing the funds to creditors. The practical effect of that ruling was that the debtor’s creditors as well as the remaining chapter 13 attorney’s . . .

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From the Editor – Eligibility

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By The Honorable William Houston Brown (Retired) Disputed claim included in calculation of eligibility. The debtor’s case was dismissed for exceeding § 109(e)’s unsecured debt limit, when the debtor had signed $1,092,000 mortgage note but the mortgage was never recorded. The lender filed an unsecured claim for $1.7 million, and the Bankruptcy Appellate Panel agreed with the bankruptcy court that...

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Critical Case Comment

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From the Editor – Claims

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From the Editor – Claims

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By Academy Staff Those who have been around consumer bankruptcy for a while remember the halcyon days when a Debtor surrendered property in the Plan; Plan was confirmed; lender would foreclosure and file its deficiency claim; Debtor would complete the Plan; and obtain a discharge of all unsecured debts including the deficiency balance. Lenders were able to realize on the...

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