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In re Danny C. Wolff and Marla J. Wolff

Bankr. No.: 
03-40853
Chapter: 
7
Date of Decision: 
May 17, 2004
Issue: 
Whether fees paid by Debtors post-petition should be applied to fees owed by the bankruptcy estate or by Debtors?
Ruling: 
Fees paid by Debtors from non estate assets had to be applied to the post-petition attorneys’ fees they incurred for services rendered for their personal benefit. Only estate assets could be used to pay that portion of the attorneys’ fees that were considered an administrative expense of the bankruptcy estate. However, as a consequence of Lamie v. United States Trustee, 124 S.Ct. 1023 (2004), a debtor’s attorney can no longer be paid at all from the Chapter 7 estate for any services rendered after January 25, 2004, unless the attorney is employed by the case trustee for a specific purpose. Lamie, 124 S.Ct. at 1031-32; In re Linda L. Rosenow, Bankr. No. 99-50365, slip op. (Bankr. D.S.D. Feb. 9, 2004).
Full Bankruptcy Court Decision: