After Travelers, Post-Petition Fees An Open Issue

Law360, New York (March 12, 2008, 12:00 AM EDT) -- In Travelers Casualty & Surety Co. of America v. Pacific Gas & Electric Company,[1] the Supreme Court held that federal bankruptcy law does not automatically disallow claims for post-petition attorneys’ fees incurred by a prepetition unsecured creditor simply because such fees are incurred in litigating issues arising under the Bankruptcy Code.

The Court, however, left open the issue whether such claims may be disallowed on the basis that the attorneys’ fees were incurred post-petition.

Creditors, distressed debtors, and their professionals have watched post-Travelers cases discussing the...
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