- 11 U.S.C.
Walton v. Clark & Walsh PC
Jul
12
2011
Ruling
Prepetition acceptance and postpetition deposit of postdated checks for attorneys' fees violated stay.
Procedural posture
Plaintiff, the U.S. Trustee (UST), filed this miscellaneous proceeding seeking a declaration that defendant law firms's fee arrangement: (i) violated the 11 U.S.C.S. § 362 automatic stay (Count I), (ii) violated the 11 U.S.C.S. § 524 discharge injunction (Count II), and (iii) created a conflict of interest between the firm and its clients (Count III). The firm moved for entry of summary judgment in its favor on all three counts of the complaint.
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Court
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