Trustee’s can keep more fees in dismissed cases
December 13th, 2012, 8:46 am
If you filed a Chapter 13 bankruptcy in Massachusetts and have either filed a motion to voluntarily dismiss your case or your case has simply been dismissed due to a motion by another party prior to confirmation, then you may not get all your money back, even though creditors have not been paid anything.
The Massachusetts Bankruptcy Court has created a new rule that changes the ability of a Trustee to retain more of your fees paid, then the $150 fee which has been the standard for quite some time. Massachusetts Local Bankruptcy Rule 13-19(f) which authorizes a flat payment of $150.00 to the chapter 13 trustee as an administrative expense is has been amended to allow the Trustee to retain in accordance with 28 U.S.C. §586(e), which can be up to 10% of the fees the Trustee is holding in escrow. In addition to any outstanding filing fees owed to the Court out of the $281 required may be held.