Bankruptcy: A Lesson in Conflicts and Sex with Clients© – Part 2 of 4

By Mark D. Yochum, Professor of Law, Duquesne University School of Law

Bankruptcy has special rules that are designed not with concern over information (in the least) but rather with effort.  §327 requires professionals that “do not hold or represent an interest adverse to the estate” and are “disinterested.”  §101(14) lays on disinterestedness, one who is not “a creditor, an equity security holder . . . or insider”, a director, officer or employee of the debtor within two years.  One cannot have “an interest materially adverse to the . . . estate or . . . class of creditors or equity security holders” for, basically, any . . .

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