Chapter 7 Trustee

District Court Upholds Georgia Bankruptcy Court’s Restrictions On Chapter 7 Trustee Attorneys’ Fees

03/15/22

In this lengthy post, we discuss Judge Paul Bonapfel’s 73-page Order in which he skewered the fee application of a Chapter 7 Trustee and effectively changed the way all judges in the Northern District of Georgia view fee applications for Trustees’ counsel. In re McConnell, Case No. 19-67128-pwb, 2021 WL 203331 (Bankr. N.D.Ga.

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Derivative Complaints by Creditors Against Chapter 7 Trustees – They Don’t Tend to Go Very Far

07/20/17

In a decision signed July 17, 2017 in the Our Alchemy, LLC bankruptcy (case 16-11596), Judge Gross of the Delaware Bankruptcy Court granted a trustee’s partial motion to dismiss a complaint, holding that a creditor cannot assert general claims against a Chapter 7 Trustee in his official capacity (essentially a derivative action meant to enrich the creditor body) . Judge Gross’s opinion is available here (the “Opinion”).

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Debtors Cannot Claim Homestead Exemption In Carve-out Funds Recovered By Trustee.

07/16/15

underwaterhouse In a July 2015 case the Chapter 7 Trustee sold a house that was underwater with three liens, and received a carve-out from the lender that held the second and third liens.  The Debtors did not object to the sale, but to the Trustee’s Final Report because it did not allow for payment of their homestead exemptions from

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