BAP Lays Down Pleading Rules for Fee Applications in Small Chapter 7 Cases

January 2, 2024

BAP Lays Down Pleading Rules for Fee Applications in Small Chapter 7 Cases

The fee application by an attorney for a chapter 7 trustee in a small case must state facts to show why the services must have been performed by an attorney, not by the trustee.

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Opinion Link

View Opinion

https://abi-opinions.s3.amazonaws.com/Rivera+on+fees.pdf

Case Details

Case Citation

Smith v. U.S. Trustee (In re Rivera), 23-1047 (B.A.P. 9th Cir. Dec. 19, 2023)

Case Name

In re Rivera

Case Type

Consumer

Court

9th Circuit

Bankruptcy Tags

Professional Compensation/Fees

Consumer Debt

Comments

Submitted by RMINCH@SERKLAND... on January 2, 2024 - 10:00

I have always thought a trustee should never be able to hire himself or his law firm as attorney for the estate where he serves as trustee. I know I lost that issue decades ago. But this looks to me to be a continuing rupture in the Code where every other party must dance round countless statutes, rules and decisions on disclosure and conflicts of interest. I have never been able to explain this rupture to my clients. After all, does not a trustee have a duty to review professional fee applications, including his own? Who would be better able to do that?