Professional Compensation/Fees

May 2024

Bankruptcy Judge Chops a Fully Secured Lender’s Fee Request by 60%

A fully secured lender’s lawyer doesn’t have a ‘blank check’ to overwork a case, Bankruptcy Judge Kimberley Tyson says.

Congress Must Act to Permit Chapter 7 Debtors to Pay Counsel After Filing

Bifurcated fee arrangements are cumbersome, temporary fixes for a problem that the Supreme Court created in Lamie.

Courts May Create Trust Accounts to Pay Sub V Trustees and Other Admin Expenses

The court can’t require a debtor to give a ‘retainer’ to a Subchapter V trustee, Judge Pearson says.

Reference Withdrawal on Houston Ethics Probe Pits UST Against Bankruptcy Judge

Despite consent by the firm to withdraw the reference of motions to disgorge its fees, a bankruptcy judge in Houston recommended against withdrawal to district court and against transfer to another district.

Supreme Court Seems Disinclined to Pay Refunds for Overpayment of U.S. Trustee Fees

Several justices seemed to believe that ‘prospective relief’ is sufficient to remedy the due process violation because the alternatives are ineffective.

Lender’s Attorneys Paid Twice the Debtor’s Counsel Fees

Unnecessarily holding the lender’s feet to the fire resulted in the allowance of attorneys’ fees to the lender that were twice the debtor’s counsel fees.

The Ethics and Professional Compensation Committee had a tremendous 2023! We strived to continue to provide our members with enlightening and useful substantive information, while also offering enjoyable and valuable social and networking opportunities.

During 2023, our committee offered a wide variety of opportunities for ABI members to learn about timely and interesting issues facing professionals in the bankruptcy arena.