Professional Compensation/Fees

Second Circuit Updates with Bill Rochelle

Getting Paid and Doing It Ethically

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.’

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.

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.

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.

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.

Debtors’ Lawyer Has No 7th Amendment Right to Sue for Post-Petition Fees, Circuit Says

The debtors’ inequitable conduct didn’t relieve counsel of the duty to disclose fees charged for post-petition litigation.

Ethical Concerns Relating to the Employment of Professionals

Bill Rochelle’s Top 10 Daily Wires