In re Appalachian Star Ventures Inc.
Mar
09
2006
Ruling
Trustee was denied motion for disgorgement of the debtor's attorney's retainer following conversion of case to chapter 7 since the attorney held a lien on the retainer and was not similarly situated with unsecured administrative claimants.
Procedural posture
With court approval, a bankruptcy debtor paid a retainer to an attorney to represent the debtor in chapter 11 proceedings, but the debtor's case was subsequently converted to chapter 7. The chapter 7 trustee moved for disgorgement of the attorney's retainer pursuant to 11 U.S.C. § 726(b) to allow a pro rata distribution to administrative claimants, including the attorney.
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Court
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