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CalAttorney2, Attorney
Category: Bankruptcy Law
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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There! I am a creditor with a bankruptcy case. Even

Customer Question

Hi there! I am a creditor with a bankruptcy case. Even though I was not granted anything; during the settlement talks the judge ordered a stay from any professionals billing while the settlement was being ironed out with the fine details. 2 questions: If this is the case, can my attorney continue to bill me on the judge made that order? and secondly, if the settlement falls apart; does the billing start up again from the date of the stay? or does it begin the date of the settlement that doesn't settle?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  CalAttorney2 replied 1 year ago.
Dear Customer,This is a very unusual court order. So the terms of the order are going to be based very specifically on what exactly the court stated.(This is not something that I can point to a general Bankruptcy Code provision or Federal Rules of Bankruptcy Procedure for the answer).But, if the court order says "All" professionals, this should include your attorney.If the court order provides a "stay" this usually means that this is a pause or "suspension" on billing (so the professional services should not be billed during this time).There of course is a question as to whether the professionals are supposed to offer their services for free during this time, or whether they are simply to delay billing (I can't tell you what the answer is to this significant question of interpretation is based only on what you posted here - and likely the court order is ambiguous - however, if the court is trying to encourage the professionals to rapidly reach a settlement, this would lean towards an interpretation that they are working for free, and they should not be dragging their feet).If the settlement falls apart, billing would resume, but based on what you stated "while ironing out the fine details" - it appears that a general settlement has already been reached - if this falls apart, the parties are probably going to need to appear in court to notify the judge - this is probably going to be the demarcation for new billing - but again the court order is not very clear.I hope this helps a little bit, unfortunately ambiguous or open ended orders leave a lot of room for interpretation and misinterpretation, but I do hope this helps put some reference points together for you.