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  • Matthew Hartley

Court Approves Chapter 7 Bifurcation Arrangement

The American Bankruptcy Institute Journal recently published Paper Chase: Court Approves Meticulously Disclosed Bifurcation of Chapter 7 Engagement by Chris Hawkins. Hawkins mentions how the Carr Opinion, issued by Hon. Tracey N. Wise,"follows the lead of several cases in other jurisdictions where bifurcated engagements have been approved."He also highlights the key ethical considerations and the results driven by detailed disclosures.

"The court’s approval of the attorney’s bifurcation of engagements into pre- and post-petition components might evidence a trend toward ensuring that those most in need of legal assistance through the bankruptcy process can afford to pay for it."
"These courts have recognized that the bifurcated agreements serve the important purpose of providing debtors access to the bankruptcy process — access that might not otherwise have existed"

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