Courts are continuing to grapple with bifurcated fee arrangements allowing chapter 7 debtors to pay the entire fee after filing.
Local or state bar groups should work up standard-form retainer agreements and disclosures to facilitate bifurcated fee arrangements.
So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.
The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.