Judges Plead with Congress to Fix the Mess Created by Lamie

Sitting en banc, three judges in St. Louis effectively barred bifurcated fee arrangements in the Eastern District of Missouri.

District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees

Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.

Bankruptcy Courts Have Jurisdiction and Power to Compel Payment of Counsel Fees

The Ninth Circuit BAP says that 28 U.S.C. § 1334(e)(2) gives bankruptcy courts exclusive jurisdiction with regard to disputes over fee allowances.

Congress Must Act to Permit Chapter 7 Debtors to Pay Counsel After Filing

Bifurcated fee arrangements are cumbersome, temporary fixes for a problem that the Supreme Court created in Lamie.