bk7 trustee hired attorney with court approval and then passed on his responsibilities. This increases the legal fees that the debtor has to pay. Is this a regular practice?

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Yes, it is. Trustees are allowed to hire counsel to pursue legal matters even if they can handle it. But yes, you can challenge the fee application if you want. You'll have to cite adequate reasons for it, and explain if you think someone else with a lower pay-scale could have actually done it, instead of the hired counsel. If the bankruptcy judge allows it, you may even get a considerable reduction in the fees.

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