UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
WILLIAM THOMAS McELHINNEY, M.D.
DEBTORS CASE NO. 82-00412
This matter is before the Court on the U.S. Trustee's Objection to the trustee's calculation of his fee in this case under the 1984 amendments to 11 U.S.C.'326(a). This case was filed under Chapter 11 on July 6, 1982, and converted to a Chapter 7 case on August 28, 1986. The U.S. Trustee contends that the trustee's fee should be calculated under '326(a) as it existed before October 8, 1984, the effective date of its amendment under the Bankruptcy Amendments and Federal Judgeship Act of 1984.
The trustee filed his Report and Account and Application for Compensation on April 28, 1992. According to "Exhibit C" attached to his Application, the computation of the commission was based on the premise that this case was filed after October 8, 1984. As stated above, this case was converted to a Chapter 7 case on August 28, 1986, but was originally filed as a Chapter 11 on July 6, 1982. The applicable Code provision, 11 U.S.C.'348(a) provides that conversion of a case "...does not effect a change in the date of filing of the petition, the commencement of the case, or the order for relief." This case clearly was filed before October 8, 1984.
Case law supports the U.S. Trustee's position in this matter, as well. In Kandel v. Alexander Leasing Corp., 107 B.R. 548 (Bkrtcy.N.D.Ohio 1988), the court stated:
At page 551. Judge Dickinson came to the same conclusion in a case from the Western District of Kentucky, In re Betty Sue Young, Case No. 3-80-02943(1)7.
In consideration of all of the foregoing, it is therefore the opinion of this Court that the trustee's compensation should be calculated under'326(a) as it existed before October 8, 1984. An order in conformity with this opinion will be entered separately.
By the Court -
Michael L. Baker, Esq., Trustee