The Debtstoppers Pro Bono Clinic, under the leadership of Attorney Michael Miller, achieved a significant legal victory in the bankruptcy case of In re Johnson, No. 22 B 04449, 2023 WL 3409597 (Bankr. N.D. Ill May 12, 2023). This case involved a debtor whose Chapter 13 bankruptcy case was dismissed before confirmation.
In a typical Chapter 13 bankruptcy process, a trustee is appointed to oversee the case. This trustee is responsible for receiving and distributing payments to creditors and is compensated through a percentage of these monthly payments. In the Johnson case, Attorney Michael Miller presented a compelling argument stating that if a Chapter 13 case fails to reach confirmation, any fees already paid to the Chapter 13 Trustee should be refunded.
The bankruptcy court, in a decision that favored the argument put forth by the Debtstoppers Pro Bono Clinic, overruled the Chapter 13 Trustee Debtor's position. This ruling aligns with the clinic's commitment to advocating for fair treatment and financial justice for debtors in bankruptcy proceedings.