In re Merovich, 547 B.R. 643

Debtor filed a Chapter 13 petition on October 3, 2014; plan was never confirmed and the case was later dismissed pre-confirmation.
Debtor paid $450 in plan payments; the Chapter 13 trustee deducted $21.15 and holds $428.85 pending court order.
Debtor’s counsel (Gendron) continued to represent the estate, incurred $4,599.50 in fees, and had received a $3,010 retainer before filing.
Counsel filed a motion to allow post-petition attorney fees as an administrative expense under 11 U.S.C. §§ 1326(a)(2) and 503(b)(2).
Court retained jurisdiction after dismissal under § 349(b) to resolve the fee motion.
Court found counsel’s services reasonable and awarded an administrative expense in the amount of $1,589.50 (the unpaid balance), directing the trustee to pay up to that amount from the funds held.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Which statute controls post‑confirmation pre‑closing distribution on pre‑confirmation dismissal: § 349(b)(3) or § 1326(a)(2)?	§1326(a)(2) governs and permits deduction of allowed administrative expenses before returning funds.	§349(b)(3) revests estate property to debtor on dismissal, so trustee should return funds.	§1326(a)(2) controls on pre‑confirmation dismissal; trustee must deduct allowed §503(b) administrative claims before returning funds.
Does Harris v. Viegelahn require return of trustee funds to debtor after dismissal?	Harris mandates return of trustee funds to debtor.	Harris applies to conversions, not dismissals; it does not negate §1326(a)(2) on dismissal.	Harris is limited to conversion context; it does not control distribution on pre‑confirmation dismissal.
Are debtor’s counsel’s post‑petition fees allowable as an administrative expense under §503(b)(2)/§330 in this dismissed case?	Counsel seeks allowance of $4,599.50 (less $3,010 retainer = $1,589.50 owed) as an administrative expense to be paid from trustee funds.	Trustee did not oppose payment but must respect statutory priority and reasonableness review.	Court independently reviewed and found fees reasonable and necessary; allowed §503(b)(2) administrative expense in the amount of $1,589.50 and directed trustee to pay up to that amount.

Harris v. Viegelahn, 135 S. Ct. 1829 (2015) (Supreme Court held funds held by Chapter 13 trustee at conversion must be returned to debtor; decision limited to conversion context)
In re Michael, 699 F.3d 305 (3d Cir. 2012) (if converted pre‑confirmation, trustee must return payments to debtor after deducting allowed administrative expenses; Chapter 13 provisions control)
In re Kirk, 537 B.R. 856 (Bankr. N.D. Ohio 2015) (post‑dismissal trustee may pay allowed §503(b) administrative expenses under §1326(a)(2); granted attorney an administrative claim)
In re Brandon, 537 B.R. 231 (Bankr. D. Md. 2015) (agreed §1326(a)(2) governs on dismissal and allowed payment of attorney administrative expenses)