Where a debtor and debtor’s counsel initiated a Chapter 13 petition in an effort to halt a foreclosure against property held by the debtor’s LLC, and where the debtor took no steps to correct the filing, sanctions would be imposed against debtor’s counsel. (Grabill) In re Scaccia, 2022 WL 1216284 (Bankr. E.D. La. April 25, 2022) Case Summary Scaccia owned...
From the Editor – Debtor’s Attorney
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By The Honorable William Houston Brown (Retired)
Attorney fees cannot be charged for preparing and prosecuting fee application. Although additional fees requested by debtor’s attorney were not unreasonable, the attorney could not be paid by the estate for billing time or for defending a fee application. The rationale of Baker Botts, L.L.P. v. ASARCO LLC, 135 S.Ct. 2158 (2015), although a Chapter 11 case, applied in Chapter 13. The attorney was not seeking fees for representing the interests of the debtor; rather, the additional fees were for representing the professional . . .
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