[CLBS] Is debtor's counsel entitled to receive legal fees after a chapter 7 has been filed and prior to converting the case to chapter 13?

[Randy French]

Good question. Is there a reason you are asking these tough questions?  I
have not researched the issue.  My thoughts, which you can quote liberally,
if to no beneficial effect, are:

 For any fees paid during the ch 7 but before the conversion, those are not
part of the ch 7 estate and a debtor is free to pay those from non-estate
income  or assets, I believe.

Sec 348 addresses the effect of conversion.  348(a) says that conversion
constitutes an order for relief but, except as provided in 348(b), does not
effect a change in  the date of filing of the petition, commencement of the
case, or the order for relief.  348(b) says the order the order for relief
means the conversion.   

The ch 13 estate is defined by 541 (commencement creates an estate) and
augmented by 1306 (post-petition property acquisitions).  If conversion does
not change the commencement of the case, then is the ch 13 estate all assets
owned as of that date, even the assets ultimately used to pay ch 7 counsel?

So, when the case is converted to ch 13 from ch 7, does the ch 13 estate
include all assets owned as of the ch 7 petition  date plus all assets
acquired after that date? Or just include all assets owned as of the
conversion date?.  I do not know.  

Good luck.  Let us all know how it comes out.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Jon Wilson
Sent: Thursday, August 04, 2016 12:48 PM
To: clbs at admws.idaho.gov
Subject: [CLBS] Is debtor's counsel entitled to receive legal fees after a
chapter 7 has been filed and prior to converting the case to chapter 13?

It is my understanding debtor's counsel is entitled to receive legal fees
directly from the debtor after a chapter 7 has been filed to defend against
the UST's dismissal motion for "abuse" under 11 USC 707(b)(a) and (b)(3).
What if it is decided not to continue to fight the UST's dismissal motion,
but rather convert to chapter 13.  Is debtor's counsel allow to retain and
credit those legal fees for services provided after a chapter 7 is filed,
but prior to the date it is converted to a chapter 13?  This assumes those
post chapter 7 filing legal fees are accounted for in an Amended 2016(b) and
the fee application filed by debtor's counsel to receive additional legal
fees through the confirmed plan?  

 

Jon R. Wilson

Attorney at Law

 

Wilson Law Offices, P.C.

4614 W. Emerald St.

Boise, ID 83706

Tel. (208)343-8400

Fax (208)424-5006

Email:  jon at boiselaw.org <mailto:jon at boiselaw.org> 

 

CONFIDENTIALITY NOTICE:  The preceding message (including any attachment, if
any) is covered by the Electronic Communication Privacy Act, 18 U.S.C.
sections 2510-2521, is CONFIDENTIAL, and may also be protected by the
ATTORNEY/CLIENT OR  OTHER PRIVILEGE.  If you believe that this message has
been sent to you in error, do not read any further portion of the message
other than the remainder of this notice, please reply to the sender that you
have received the message in error, and delete the message.  If you are not
the intended recipient, you are hereby notified that any retention,
dissemination, distribution, or copying of this communication is strictly
prohibited.  We do not waive any attorney/client or work privilege by the
transmission of this message.  Thank you.

 

_______________________________________________
CLBS mailing list
CLBS at admws.idaho.gov
http://admws.idaho.gov/mailman/listinfo/clbs