In Re John and Rosemary GORSKI, Debtors. in Re Kenneth KIRSCHENBAUM, Trustee-Appellant

FEINBERG, Chief Judge.

This is an appeal from an order of the United States District Court for the Eastern District of New York affirming a decision of the bankruptcy court that imposed a $500 surcharge on appellant Kenneth Kir-schenbaum for breach of his fiduciary duties as a Chapter XIII trustee. For the reasons stated below, we affirm in part and remand in part.

I

In August 1979, the named debtors, John and Rosemary Gorski, filed a Chapter XIII petition in the bankruptcy court in the Eastern District of New York. Chapter XIII of the Bankruptcy Act (the Act), which governs this appeal, 1 is…