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ABI Journal

August 20, 2025

Disgorgement Was the Remedy for Failure to Disclose a Post-Petition Retainer

Disclosing a post-petition retainer in a monthly operating report wasn’t a substitute for disclosure required by Rule 2016(b)(2).

New York Southern District

August 13, 2025

Liquidating Trustee Ousted for an Undisclosed Litigation Funding Agreement

The pricey litigation funding agreement had not been disclosed to creditors before confirmation.

Texas Northern District

July 21, 2025

Paying a Post-Petition Retainer Without Advance Approval Was Ok

Approving a retainer after the fact was a sensible exercise of the court’s discretion when the new lawyer’s services were necessary to avoid dismissal of the Subchapter V case.

New York Northern District

July 01, 2025

‘Serious Concerns’ About a Conflict Aren’t Enough to Disqualify a Trustee’s Counsel

A firm wasn’t disqualified when attorneys who left the firm long ago had represented an adversary in a possibly similar engagement.

11th Circuit, Florida, Florida Southern District

June 26, 2025

There’s Reciprocal Fee-Shifting in California When a Contract Has Unilateral Fee-Shifting

In California, bringing litigation with a marginal possibility of success could be a bad bet whenever a contract permits one side to recover attorneys’ fees.

9th Circuit, California, California Eastern District

June 04, 2025

How to Liquidate a Secured Lender’s Collateral and Still Get Paid

To liquidate an underwater lender’s collateral, there must be a carveout giving unsecured creditors a ‘meaningful distribution.’

9th Circuit

May 14, 2025

No Circuit Split: 4 Circuits Say No ‘13’ Trustee Fees if Dismissal Precedes Confirmation

Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.

2nd Circuit

May 13, 2025

A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7

After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.

10th Circuit, New Mexico

May 09, 2025

In ‘13,’ a Creditor Wanted Debtors’ Counsels’ Fees to Come Last, Not First

Chicago’s Bankruptcy Judge Donald Cassling nixed an idea that would have made chapter 13 unpalatable for debtors’ counsel.

7th Circuit, Illinois, Illinois Northern District

May 02, 2025

Post-Petition or ‘Evergreen’ Retainers Are Permissible in Subchapter V, Judge Isicoff Says

A Sub V case was not of a ‘size or exceptional nature’ to justify a post-petition retainer when counsel could file interim fee applications.

11th Circuit, Florida, Florida Southern District