Rochelle's Daily Wire

The Ninth Circuit BAP joins the minority on an issue that’s headed for the court of appeals.

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

Section 330(a)(4)(B) is an exception to the American Rule and the notion that administrative expenses must benefit the estate, not just the debtor.

A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.

Courts are continuing to grapple with bifurcated fee arrangements allowing chapter 7 debtors to pay the entire fee after filing.

Local or state bar groups should work up standard-form retainer agreements and disclosures to facilitate bifurcated fee arrangements.

So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.

The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.

Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.