Law firm, which had previously represented the corporate and individual debtors, and was still owed fees by the corporation, was approved to represent debtors in their bankruptcy cases. The bankruptcy court raised the issue of conflict of interest for the first time in connection with law firm's fee application for work performed in the bankruptcies. Finding multiple conflicts of interest that law firm had not revealed, the bankruptcy court denied all requested fees. This decision was affirmed in part, and reversed and remanded in part, by the district court in 229.pdf.