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Fwd: Chapter 7 prepetition/postpetition fee agreements - you might
Here's a case in Idaho this bar may want to follow. It's with Judge Pappas.
This has to do with a law firm (Weekes Law, PLLC) filing fairly high volume
cases in Idaho (coming from Utah) where they have both a prepetition and
postpetition agreement and aggressive collection practices against the
debtor under the "postpetition" agreement when there is a default.
Obviously this is problematic. The UST filed a Motion to cancel agreements
and to disgorge fees.
The Court did not make a decision at the hearing yesterday but did
highlight the problems with this fee arrangement. There will be an
evidentiary hearing to follow on March 8, 2017, at 9:00 a.m. It's an issue
relevant to all of us in all jurisdictions. I thought you would be
interested.
The attachments in the dropbox link include a 48 minute audio file of a
hearing on 1/4/17 and the UST's Motion. I did not pull any other pleadings
but you can log on to Pacer and pull them.
The post was migrated from Yahoo.