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ABI Journal

January 30, 2020

Another Court Approves an Arrangement for Paying Most Chapter 7 Fees After Filing

Careful drafting and copious documentation are required for a bifurcated fee arrangement to pass muster in chapter 7.

6th Circuit, Kentucky, Kentucky Eastern District

October 10, 2019

Failure to Raise a Stern Objection Violates a Lawyer’s Standard of Care

The lawyer whose waiver led to Wellness International avoided malpractice by the skin of his teeth.

7th Circuit, Illinois, Illinois Northern District

October 07, 2019

Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors

Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.

7th Circuit, Indiana, Indiana Southern District

May 23, 2019

Reconstructed Time Records Are Ok in a POC for Pre-Filing Attorneys’ Fees

Rule 3001 doesn’t require time records in a mortgage lender’s proof of claim, Judge Loyd says.

10th Circuit, Oklahoma, Oklahoma Western District

May 15, 2019

Fifth Circuit Facilitates ‘No Money Down’ Chapter 13s

Bankruptcy courts must cooperate before debtors’ counsel are assured of being reimbursed for advancing costs and expenses before filing.

5th Circuit

May 03, 2019

A Cash Collateral Carveout Doesn’t Automatically Make a Bank Liable for Fees

Bankruptcy Judge Lloyd limits a recent Sixth Circuit opinion to its facts in holding that a bank was not liable to pay professional fees from a cash collateral carveout.

6th Circuit, Kentucky, Kentucky Western District

April 16, 2019

Bifurcated Fees for Destitute Chapter 7 Debtors Approved in Utah

Copious disclosure required for post-petition payment of fees to be permissible in chapter 7.

10th Circuit, Utah

February 12, 2019

Another Circuit Allows an Unsecured Claim for Contractual Attorneys’ Fees

The circuits agree, but the lower courts disagree, on the allowance of post-petition attorneys’ fees based on contract.

4th Circuit

January 08, 2019

Sixth Circuit Enforces a ‘Carveout’ for Professionals after Conversion to Chapter 7

The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.

6th Circuit

November 30, 2018

Circuit Upholds $257,000 in Sanctions for Failure to Disclose a Claim Assignment

A lawyer was personally assessed $257,000 in sanctions for failure to disclose that his client had sold its $14 million claim.

6th Circuit