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In re Richard Jay Pearsall and Arla Rae Pearsall

Bankr. No.: 
00-30080
Chapter: 
7
Date of Decision: 
January 11, 2001
Issue: 
Whether the debtors' attorney's fees of $1,300 were reasonable under ยง 329(b)?
Ruling: 
Fees of $800 were deemed reasonable. The excess was ordered to be returned to the debtors as part of their available exemptions. The facts of the case did not warrant higher than usual fees. Though post-petition work regarding the dischargeability of a fraud-related debt was expected, those post-petition services could not be paid by the debtors pre-petition without running afoul of Snyder v. Dewoskin (In re Mahendra), 131 F.3d 750 (8th Cir. 1997). Attorney could seek compensation for post-petition work from debtors' post-petition, non bankruptcy estate assets.
Full Bankruptcy Court Decision: