Marilyn Marshall v. Edward Johnson, 100 F.4th 914

Edward Johnson filed for Chapter 13 bankruptcy and made about $3,800 in plan payments to the bankruptcy trustee, Marilyn O. Marshall.
Only $750 was paid out to creditors as pre-confirmation adequate protection payments; the remainder was held pending confirmation of Johnson’s plan.
The bankruptcy court never confirmed Johnson’s payment plan due to unresolved issues with a loan and domestic support obligations.
The bankruptcy court dismissed the case for unreasonable delay and ordered the trustee to return all undisbursed funds to Johnson, including a $260 fee she had withheld as compensation for her services.
The trustee appealed, claiming entitlement to retain the fee under 28 U.S.C. § 586(e)(2) and 11 U.S.C. § 1326(b), even after dismissal and lack of plan confirmation.

Issue	Johnson’s Argument	Marshall’s Argument	Held
Whether a Chapter 13 trustee may retain her fee from undisbursed payments if the plan is never confirmed	All undisbursed funds, including trustee's fee, must be returned to debtor; no authority to deduct fee if plan not confirmed	Trustee should be entitled to deduct and keep a statutory percentage fee, per § 586(e)(2) and § 1326(b), even without confirmation	Trustee must return all undisbursed funds, including her fee, to the debtor if the plan is not confirmed

Stamat v. Neary, 635 F.3d 974 (7th Cir. 2011) (de novo review of legal questions in bankruptcy)
Ransom v. FIA Card Servs., N.A., 562 U.S. 61 (U.S. 2011) (starting statutory interpretation with plain meaning)
Russello v. United States, 464 U.S. 16 (U.S. 1983) (statutory silence implies intentional exclusion)