Mohns, Inc. v. Bruce Lanser, No. 15-1150 (7th Cir. 2015)
Annotate this CaseThe bankruptcy court awarded a fee of $28,030.33 to the bankruptcy trustee, Lanser, in a Chapter 7 bankruptcy. The district court affirmed, over a challenge by the debtors’ principal unsecured creditor, Mohns, which had a state court judgment of $142,899 against the debtors for construction of a house. The bankruptcy proceeding lasted for more than four years; the trustee collected $498,621.56 to distribute to Mohns and the debtors’ other creditors. The amount awarded the trustee was just under the maximum amount allowable; as the result of a mistake in his fee application he had asked for slightly less than the maximum allowable amount, 11 U.S.C. 330(a)(7). The Seventh Circuit affirmed. Although $370,996.54 went to mortgagees of the debtors’ home, which the trustee had sold to raise money for the creditors, administration of an estate with such secured claims frequently presents complex issues for the trustee.
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