District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees
Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.
Court:
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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.