“The Bankruptcy Code outlines a strict framework for the retention and compensation of estate professionals. Estate professionals must be retained in accordance with 11 U.S.C. §327, which requires, generally, that the estate professional must be “disinterested,” meaning the professional “is not a creditor, an equity security holder, or an insider”. 11 U.S.C. §101(14). Consequently, with limited exception, an attorney who has represented the debtor pre-petition cannot represent the bankruptcy estate. Nonetheless, recognizing this restriction may, at times, be counter-productive, section 327(e) authorizes a trustee or debtor in possession to employ “for a specified special purpose” an attorney who has previously represented a debtor “if in the best interests of the estate”. Once an estate professional has been retained, his or her paramount obligation is to the estate. ” Case Number: 17-21187 Judge Name: LMI Case Name: IN RE NESTOR Sign Date: 09/26/2019 Cite: 2019 WL 4735833.
Posted Nov 11, 2019
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