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Need clarification on 327(a) when friend/family pays your retainer
When a friend or family member pays your retainer for a Chapter 11 Debtor,
it may be a gift or it may be a loan. In any event, it has the potential to
create a conflict of interest for employment under 327(a). If it's a loan
and they become a creditor of the estate, now you are holding a creditor's
funds in your trust account. Problems? Looks like it could be. I
understand the mantra disclose, disclose, disclose, but can someone who
knows this stuff well please explain to me how a DIP attorney can get
employed in this scenario? What waivers, etc. might need to be in place
prior to filing?
In the recent Fifth Circuit case of *In re Am. Intl Refinery,
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