Wednesday, November 4, 2020

Bankruptcy and Attorney's Fees

 

Chapter 7 debtor's prepetition personal injury counsel was entitled to share of settlement later obtained by Chapter 7 trustee:

 Under N.Y. Jud. Law § 475, a law firm that had represented the debtor for nine years in a personal injury lawsuit prior to the debtor's Chapter 7 bankruptcy filing was entitled to a charging lien on the settlement proceeds for the "reasonable value" of the services that the law firm provided where the Chapter 7 trustee subsequently settled the litigation. The court concluded that the law firm was entitled to fees of $22,888.22 and expenses of $3,447.13, for a total of $26,335.35.

 In re Rivera, 2020 WL 5047422 (Bankr. S.D. N.Y., August 26, 2020)

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