Where the trustee made no distributions and performed only his regular duties as trustee, the court denied his fee application in total. Citing efficiency concerns, the court also reduced the trustee’s attorney fee application by almost half. In re Stroud, 2018 Bankr. LEXIS 2136, No. 15-74063 (Bankr. N.D. Ga. July 19, 2018).
The debtor filed a Chapter 13 plan proposing to maintain her mortgage payments and pay unsecured creditors at 100%. When she missed payments on the plan, she allowed her case to be converted to Chapter 7. Five weeks later, having obtained new counsel, she moved to reconvert to chapter 13 and to continue her 100% plan. The Chapter 7 trustee objected to the motion, but the case was converted nonetheless. The Chapter 7 trustee, as both trustee and member of the law firm representing him, submitted a fee application seeking $1,716.50 in trustee fees and $13,607.09 in attorney fees. The debtor objected. [Read more…] about Court Puts Trustee Fees Under the Microscope