Concerning Chapter 7 trustee fees, the Fifth Circuit rejected the rule that Section 326 is merely a statutory cap on fees that may be awarded to chapter 7 trustees. Instead, the Court held that...
Chapter 7 trustee compensation exceeding distributions to unsecured creditors is not per se an "extraordinary circumstance" that justifies disallowance of the trustee's full "commission" under...
In re John Wilson, Case No. 15-1150 (7th Cir., Aug. 10, 2015)
Ruling:
Affirmed the judgment of the U.S. District Court for the Eastern District of Wisconsin; the 7th
Circuit upheld the fee awarded to the chapter 7 trustee after it was challenged by a creditor.
Relying on plain language, legislative history, and following prior decisions by the Third and Fifth Circuits, the Ninth Circuit Panel held that section 326(a) of the Bankruptcy Code does not...
Judge(s):
Alex Kozinski, Raymond C. Fisher, and Paul J. Watford, Circuit Judges. Opinion by Judge Kozinski.
