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April 17 Virtual Meeting

APRIL 17 Meeting

Presented by:

  • Kelly Hagan, Chapter 7 Trustee in Traverse City, Michigan and former NABT President
  • Gary Seitz, Chapter 7 Trustee in Wilmington, Delaware and current NABT Board member

Q: If the case is changed from a Sub V to just a Chapter 11 and you are dismissed as Trustee, is it best to just not ask for payment for the hours worked if there is very little money available?
A: Kelly said for her case, she spent so little time in it, she decided to not pursue payment, but it may depend on the situation.

Q: How should we handle identification when Pro Se debtors only appear by phone?
A: Upload ID by phone

Q: Do you believe that the Sub V trustee will typically be the Chapter 7 trustee if the case is converted?
A: Kelly & Tamera stated that the expectation is you will likely get the case upon conversion.

Q: What do we see as a general consensus as to the volume of cases to be filed with the increase with the cares act to $7.5M?
A: Kelly stated that during a meeting she attended today, there seems to be a consensus in her area that there may be a large uptick in the late summer. Lynn stated that people in her district seem to be hopeful for the CARES act provisions. Kelly said it is hard to file and propose a plan when no one knows when we will get back to whatever our new normal is.

Q: How many hours (ballpark) do the Sub V cases require for a Trustee, average?
A: Tamera thinks this is a difficult question to answer. The panelists agree it varies greatly depending on the needs of the case.

Q: I am surprised to learn that several other Chapter 7 trustees have been appointed as Subchapter V trustees.  We were told in Region 2 that the UST would not be appointing Chapter 7 panel trustees as Subchapter V trustees in our region as they were looking for individuals with a different "skill set" - can you comment on whether this is a common policy in other districts or not?
A: In some districts it appears they had differing rules.

Q: If cases are dismissed, how do you get paid?
A: If the plan is confirmed, the trustee should be able to withhold funds for payment.

Q: Can a Sub V trustee hire professionals?
A: Yes, but carefully.

Q: If cases are dismissed, how do you get paid?
A: If the plan is confirmed, the trustee should be able to withhold funds for payment.

 

Other Suggestions/Comments from Attendees

  • Regarding payment in dismissed cases, our Judge (in our particular case with particular abusive filing facts) that sanctions would fund the trustee's time...
  • Region 11, NDIL we have telephonic meetings scheduled through July 3rd.
  • Great advice on the additional insurance question. I assumed the blanket bond and my legal malpractice coverage were enough but did not realize I could get a rider for the SubV work.