In re Career Concepts, Inc., 76 B.R. 830 (Bankr.D.Utah)
PUBLISHED
See 86.pdf
The court denied all compensation sought by attorneys acting as counsel for corporate chapter 11 debtor-in-possession under 11 U.S.C. § 327(a), based on fact that attorneys were not disinterested. As the father and brother of debtor's principal officer, attorneys were relatives, insiders, and interested parties, and could not be disinterested, as is required. Attorneys' assertion that they relied on the court's appointment of them was rejected on the ground that it was their duty to acquaint themselves of the legal requirements for representation of debtors, and it was not up to the court to discover their relationship with a corporate employee. Nonetheless, there is no disinterest requirement for attorneys representing chapter 7 debtors, and attorneys would be allowed to submit applications for services they rendered after conversion of debtor's case to chapter 7, which application would be subject to all requirements of law.