Will Bankruptcy Court Allows a Chapter 13 Fee Application for Objections to Stale Claims?

Yes.

As reported by Robin Miller of CBAR, the Court in In re Alexander, 2014 WL 5449653 (Bankr. E.D. Tenn., Oct. 22, 2014) allowed Chapter 13 debtors’ attorney’s supplemental fee application for objections to stale claims.

The court allowed the Chapter 13 debtors’ attorney’s supplemental fee application for $631.24 in fees and expenses for objecting to two proofs of claim filed for time-barred claims, despite the Chapter 13 trustee’s objection that the value to the estate was little more than the amount of the fees awarded. The debtors’ attorney did realize a net economic benefit of $1,373 for the estate even if all the fees requested were rewarded, and the court noted that stale claims were creating feasibility problems in more cases, and claims were being reviewed with more care.

(case no. 1:13bk13462) (Bankruptcy Judge Shelly D. Rucker)

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