Post Confirmation Attorneys Fees in Individual Chapter 11 Case

Typically once a chapter 11 plan is confirmed, the assets of the estate are transferred to the “Reorganizaed Debtor” who then proceeds on its merry way.  The Reorganized Debtor may retain and pay counsel without the necessity of court oversight, meaning no expensive and time-consuming fee applications.  Typically the Plan sets forth that the Reorganized Debtor may retain counsel etc.

What about chapter 11 cases for individuals?  Confirmation does not result in a discharge.  According to the Central District Form Plan, Form 2081-1.PLAN, confirmation ressults in a transfer of the assets to the “reorganized debtor’ (small caps).  Does it therefore work the same way?  The question remains, may the debtor retain and pay counsel, after confirmation, without filing an application to employ and fee applications?  The form PLAN does not say.

The easy answer is to include language in the form PLAN that provides that the debtor may retain and pay counsel without court approval after the Plan is confirmed.

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