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Bankruptcy Case: Debtors V. US

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Title: In re Jesse L. Howell, Deborah A. Howell, Debtors. Facts: In January 1992, Jesse and Deborah Howell (“debtors”) retained Danna Archer to represent their “personal interest, including…interest in their wholly owned corporation, Debbie’s School of Beauty Culture (“school”)” (In re Howell, 1992). A month later, the debtors voluntarily filed for Chapter 13 Bankruptcy. The debtors retained Nelson Jones, who is not affiliated with Archer, to file Chapter 11 Bankruptcy on behalf of the school. In March, the debtors Chapter 13 Bankruptcy case was converted to Chapter 11, and Archer filed a motion for a Joint Administration for the two estates. The motion was granted in May. Archer ceased legal representation of the school due to the theoretical conflicts of interest the following month. In October, 1992, the joint administration was granted a motion to discontinue. Archer is seeking $21,015.97 for legal fees and expenses. $14,587.42 was granted as it stemmed from the personal bankruptcy case. $6,428.55 was taken under advisement as the amount relates to fees accrued from representing the school (In re Howell, 1992). …show more content…

Rule: 11 U.S.C. §327(a) states that “trustees may employ the services of an attorney so long as the chosen attorney (1) neither holds nor represents an interest adverse to the bankruptcy estate, and (2) qualifies as a disinterested person” (In re Howell,

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