Can a trustee be compensated for services where he/she discovered assets and the debtor then converted the case?
The Code has not changed with respect to a chapter 7 trustee’s right to compensation when a case converts to chapter 13. However, case law is split on this issue. When a chapter 7 trustee is entitled to compensation for a conversion or dismissal of the debtor’s prior case pursuant to 11 U.S.C. § 707(b), and some portion of that compensation has not been paid, the chapter 7 trustee is entitled to payment (as set forth in § 1326(b)(3)(B)) under the plan. Pursuant to § 1326(d), such compensation is payable even if the debt was discharged in a prior case.
