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In re Jacqueline L. Otteson

Bankr. No.: 
05-30005
Chapter: 
13
Date of Decision: 
February 1, 2006
Issue: 
In this case converted from Chapter 7 to Chapter 13, which fees of the debtor's counsel could be paid from the estate as an administrative expense?
Ruling: 
Under 11 U.S.C. § 330(a) and Lamie v. United States Trustee, 124 S.Ct. 1023 (2004), fees for a Chapter 7 debtor’s counsel cannot be paid from the bankruptcy estate. Instead, the attorney should receive his fees in full for his pre-petition work before the petition is filed, and the debtor is responsible to pay any fees for post-petition services. Since this case converted from a Chapter 7 to a Chapter 13, the unpaid fees for the debtor’s counsel’s Chapter 7 services became an unsecured claim against the Chapter 13 bankruptcy estate that could be paid to the extent funds were available to pay unsecured claims. Only the attorney’s fees for his Chapter 13 services and related expenses could be paid from the estate as a higher-priority administrative expense.
Full Bankruptcy Court Decision: