Federal 7th Circuit Court
Civil Court
Bankruptcy
In a bankruptcy case, the debtor made payments to the bankruptcy trustee under a proposed payment plan but the plan was never confirmed and the case was dismissed for unreasonable delay. The bankruptcy court then ordered the trustee to return the undisbursed payments without first deducting a statutory percentage fee as compensation. The trustee appealed and the Seventh Circuit affirmed, finding that the U.S. Bankruptcy Code requires the Chapter 13 trustee to return the fee when the debtor’s plan is not confirmed. (SYKES and EASTERBROOK, concurring)