Illegal Ch. 11 Fee Practices A Boon For Attys: Study

Law360, New York (May 6, 2009, 12:00 AM EDT) -- U.S. bankruptcy courts routinely authorize and tolerate illegal fee practices, which has helped attorneys reap higher and higher paydays, according to a new study by a pair of University of California, Los Angeles law professors.

The study, titled “Routine Illegality in Bankruptcy Court Fee Practices,” looked at bankruptcy professional fees in 102 of the largest public-company bankruptcies concluded from 1998 to 2007. It found, among other things, that some of the practices were such clear violations of the law that judges must be aware of their...
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