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In re Bays (Case No. 11-72355) 05/17/2013

The debtor filed an application to approve employment of counsel following the appointment of a chapter 11 trustee, that is after the debtor was no longer a debtor in possession.  The application provided that he would seek payment, at least in part, from assets of the estate.  The court noted that if counsel for the debtor in either a chapter 7 or chapter 11 case is not employed pursuant to § 327, then the court may not award compensation to such counsel from the assets of the bankruptcy estate.  The court thus denied the application for employment.

Date: 
Friday, May 17, 2013
Category: 
Chapter 11 Issues
Employment of Professionals
Individual Chapter 11
Chapter: 
11