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§ 1326

In re Rogers

Ruling
Debtor's attorneys not entitled to have their fees paid directly by trustee after denial of confirmation.
Issue(s)
Where chapter 13 case was dismissed prior to confirmation, could debtor's attorneys' fees be paid directly by trustee from preconfirmation monthly payments on hand or were the attorneys required to file a fee application?

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Consumer opinion summary, case decided on September 22, 2014 , LexisNexis #1014-068

In re Dickens

Ruling
Trustee's fee based on fixed percentage of plan payments had to be returned to debtor upon preconfirmation dismissal.
Issue(s)
Whether the trustee is permitted to retain a collected percentage fee provided for by 28 U.S.C. § 586 when the debtors' case was dismissed prior to confirmation of a plan?

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Consumer opinion summary, case decided on July 25, 2014 , LexisNexis #0814-101

In re Vaughter

Ruling
Funds held by trustee were subject to attachment, levy or garnishment upon dismissal of debtor's chapter 13 case.
Issue(s)
Were funds on hand with chapter 13 trustee upon dismissal subject to levy by state department of revenue or was trustee required to return the funds to the debtor.

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Consumer opinion summary, case decided on February 28, 2014 , LexisNexis #0314-133

In re Garris

Ruling
Bankruptcy court could not compel trustee to pay legal fees directly to debtors' attorneys pursuant to "assignment of rights" signed by debtor.
Issue(s)
Whether a bankruptcy trustee was allowed, under an "assignment of rights" chapter 13 debtors signed before their case was dismissed, to pay legal fees the debtors owed to their counsel instead of returning money he received from the debtors to the debtors.

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Consumer opinion summary, case decided on September 05, 2013 , LexisNexis #0913-134

In re James

Ruling
Case reopened and trustee ordered to comply with order to disburse funds.
Procedural posture

Debtor filed a motion to reopen his chapter 13 bankruptcy case and for an order requiring a standing chapter 13 trustee to release funds to the debtor's attorney. A finance company and another creditor filed an objection to the debtor's motion, alleging that a third-party citation to discover assets that was filed in an Illinois court and served on the trustee trumped the release of funds.

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Consumer opinion summary, case decided on April 18, 2013 , LexisNexis #0513-096

Williams v. Marshall (In re Williams)

Ruling
Funds held by trustee after voluntary dismissal of case had to be returned to debtor.
Procedural posture

Debtors filed a complaint against chapter 13 trustee, seeking turnover of all funds still on hand at the time their bankruptcy case was dismissed. The debtors filed a motion for judgment on the pleadings.

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Consumer opinion summary, case decided on March 13, 2013 , LexisNexis #0413-101

Price v. Ables (In re Price)

Ruling
Objection to garnishment against trustee in dismissed chapter 13 case overruled.
Procedural posture

After a debtor's chapter 13 case was dismissed, plaintiff, the trustee for the debtor's estate, filed an adversary proceeding pursuant to 11 U.S.C.S. § 1326 for the turnover of property made to chapter 13 trustee by defendants while the case was still pending.

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Consumer opinion summary, case decided on January 09, 2013 , LexisNexis #0213-063

In re Locascio

Ruling
Motion to reopen dismissed case denied where trustee properly turned plan payments over to debtor despite garnishment.
Procedural posture

A chapter 13 trustee filed a motion to reopen a dismissed case to determine if funds paid to the debtor under 11 U.S.C.S. § 1326(a)(2) belonged to a creditor.

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Consumer opinion summary, case decided on November 05, 2012 , LexisNexis #1212-032

In re Fischer

Ruling
Order to turn over funds to debtor upon dismissal could be superseded by state court writ of garnishment.
Procedural posture

A chapter 13 trustee filed a motion to determine whether a court order to turn over funds to a debtor pursuant to 11 U.S.C.S. § 1326(a) could be superseded by a writ of garnishment issued by another court.

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Consumer opinion summary, case decided on July 16, 2010 , LexisNexis #1010-103

Spero v. Porecco (In re Porecco)

Ruling
Order for return of funds to debtor reversed on reconsideration given discovery that debtor's chapter 13 plan had been confirmed in 2005.
Procedural posture

The chapter 7 trustee filed a motion for reconsideration of an order directing the chapter 7 trustee to turn over to the debtor $ 60,740 held by the trustee.

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Consumer opinion summary, case decided on April 07, 2010 , LexisNexis #0610-140