Bankruptcy: Pre-Confirmation Fee Requests Governed By Federal Bankruptcy Law; Post-Confirmation Requests Governed By State Law

 

Ninth Circuit So Holds in Recent Published Decision.

     In In the Matter of Hoopai, Case No. 07-15868 (9th Cir. Sept. 14, 2009) (for publication), the Ninth Circuit decided two things: (1) a creditor’s pre-confirmation request for an award of fees as an oversecured creditor in a Chapter 13 case was governed by 11 U.S.C. section 506(b), rather than state law; and (2) debtor’s post-confirmation request for an award of fees was governed under state (Hawaii) law. As a result, an $83,542.97 award to fee to creditor and a denial of fees to debtor were both vacated, to return to the bankruptcy court for redetermination.

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