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§ 707(b)(4)

Baldwin, In re

Ruling
Factoring of debtor’s attorneys’ fees could not be allowed as it created an inherent conflict ofinterest and lacked adequate disclosure. (Bankr. W.D. Ky.)
Issue(s)
Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13; Substantial

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Consumer opinion summary, case decided on October 05, 2021 , LexisNexis #1221-016

Gistis, In re

Ruling
Debtor's attorney sanctioned for providing incorrect information on Schedule C pertaining todebtor's homestead exemption. (Bankr. D. Me.)
Issue(s)
Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13; Substantial

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Consumer opinion summary, case decided on March 24, 2020 , LexisNexis #0520-044

Tatro, In re

Ruling
Motion for disgorgement of fees granted where attorneys failed to investigate the informationprovided by debtor. (Bankr. C.D. Ill.)
Issue(s)
Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13; Substantial Abuse;

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Consumer opinion summary, case decided on January 31, 2020 , LexisNexis #0320-039

In re Pigg

Ruling
Attorneys' fees ordered disgorged due to false certifications regarding debtors' assets.
Issue(s)
Should debtor's attorney be sanctioned for making knowingly false statements regarding debtor's assets?

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Consumer opinion summary, case decided on November 20, 2015 , LexisNexis #1215-062

In re Hanson

Ruling
Trustee not entitled to fees and costs incurred prosecuting motion to dismiss debtor's case for abuse.
Issue(s)
Was trustee entitled to an award of attorneys' fees and costs incurred in connection with the successful prosecution of a motion to dismiss debtor's case for abuse?

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Consumer opinion summary, case decided on February 27, 2015 , LexisNexis #0315-127

Kelly v. Cuomo (In re Cuomo)

Ruling
Attorney ordered to disgorge portion of fee for not investigating information in debtor's prior petitions.
Procedural posture

In connection with an adversary proceeding, the court issued an order to show cause why debtor's attorney should not be sanctioned for failing to list a known debt on the debtor's bankruptcy schedules and for failing to represent the debtor in the adversary proceeding. The attorney moved to withdraw from representing the debtor.

Issue(s)
Whether a bankruptcy attorney violated the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, or the Nevada Rules of Professional Conduct when he failed to review earlier chapter 7 bankruptcy petitions a debtor filed to determine whether information in those petitions was consistent with information in the debtor's credit reports and information that appeared in a new chapter 7 bankruptcy petition and bankruptcy schedules the debtor filed.

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Consumer opinion summary, case decided on June 20, 2013 , LexisNexis #0713-124

Gargula v. Bisges (In re Clink)

Ruling
Attorney sanctioned and ordered to disgorge fees due to failure to enter into written contract with debtor or conduct reasonable investigation.
Procedural posture

United States Trustee ("UST") filed a motion seeking an order which required respondent attorney to disgorge fees he received from a Chapter 7 debtor, imposed sanctions on the attorney based on alleged violations of 11 U.S.C.S. § 707(b)(4), referred the attorney to the U.S. District Court for the Western District of Missouri for disciplinary action. The court held a hearing on the UST's motion.

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Consumer opinion summary, case decided on April 23, 2013 , LexisNexis #0513-061

In re Moffett

Ruling
Attorney sanctioned for failure to investigate circumstances giving rise to filing case.
Procedural posture

A chapter 7 debtor's attorney appeared pursuant to an order to show cause issued by the court sua sponte because of the attorney's apparent violation of his duty to perform a reasonable investigation of the circumstances giving rise to the filing of the debtor's petition under 11 U.S.C.S. § 707(b)(4)(C) and (D).

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Consumer opinion summary, case decided on March 02, 2012 , LexisNexis #0412-027