Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)

When Chapter 7 debtors’ counsel bifurcated services and “factored” the fees due for post-petition services and failed to adequately disclose the arrangement, the attorney violated § 329; the business of “factoring” of obligations owed to debtors’ counsel constituted an impermissible splitting of fees. (Michael) In re Roberta Ellarae Wright, et al, 2018 WL 4211570 (Bankr. N.D. Okla. Sept. 4, 2018)

Case Summary

Judge Michael consolidated 17 Chapter 7 cases, all filed by the same debtors’ counsel, to determine whether . . .

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