Hopkins v. Asset Acceptance LLC (In re Salgado-Nava)
- Summarized by Kevin Baum , Windels Marx Lane & Mittendorf, LLP
- 12 years 5 months ago
- Citation:
- Hopkins v. Asset Acceptance LLC (In re Salgado-Nava), No. ID-11-1389-MkHJu, --- B.R. --- (B.A.P. 9th Cir. July 25, 2012)
- Tag(s):
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- Ruling:
- Reversing the Bankruptcy Court, the Ninth Circuit BAP held that under 11 U.S.C. § 330(a)(7), absent extraordinary circumstances, bankruptcy courts should approve chapter 7, 12 and 13 trustee fees requested at the statutory rate set forth in 11 U.S.C. § 326(a) without any significant additional review.
- Procedural context:
- The Bankruptcy Court for the District of Idaho found that the reasonable value of the chapter 7 trustee’s services only amounted to $750 and limited his fees to that amount, instead of the $1,315.41 requested. On appeal, the Ninth Circuit BAP reviewed de novo whether the Bankruptcy Court applied the “correct legal rule” set forth in 11 U.S.C. § 330(a)(7).
- Facts:
- On October 22, 2009, the debtor filed a chapter 7 petition. While the chapter 7 trustee initially determined that the debtor’s case was a no-asset case, the trustee sent routine notices to various taxing authorities notifying them of the debtor’s case. In response to notice, the state of Idaho sent the chapter 7 trustee the debtor’s tax refunds for 2009 and 2010, which totaled approximately $10,000. The chapter 7 trustee then withdrew his no-asset report, and the debtor amended his schedules to exempt part of the refunds. Ultimately, the chapter 7 trustee recovered $5,654 that could be used to pay creditors dividends and the trustee’s fees and expenses. Based on the statutory rates set forth in 11 U.S.C. § 326(a), the chapter 7 trustee requested that the Bankruptcy Court award him fees in the amount of $1,315.41, plus actual expenses of $46.10.
- Judge(s):
- Markell, Hollowell and Jury, Bankruptcy Judges
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