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

November 28, 2018

Delaware Judge Allows Unsecured Claim for Contractual Attorneys’ Fees

Delaware district judge reads Supreme Court’s Travelers opinion as requiring the allowance of post-petition contractual claims for attorneys’ fees.

3rd Circuit, Delaware

October 08, 2018

Liquidators Conducting GOB Sales Are Not ‘Professionals’ Covered by Section 327

U.S. Trustee rebuffed in subjecting liquidators to retention as ‘professionals’ under Section 327.

3rd Circuit, Delaware

September 24, 2018

Chapter 7 Trustee Is Paid in a Case Converted to Chapter 13

Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.

1st Circuit, Massachusetts

August 07, 2018

New York Judge Rails Against the Use of ‘Appearance Counsel’

Multiple ethical violations may occur with the use of so-called appearance counsel in consumer bankruptcies.

2nd Circuit, New York, New York Southern District

July 31, 2018

Ninth Circuit Requires Explicit Objection to Avoid Forfeiting an Appeal

Ethical issues abound when a committee counsel’s own financial interest conflicts with its client’s interests.

9th Circuit