In re Home Loan Service Corp.
Opinion
Lead Opinion
Weissbrodt, J.
MEMORANDUM DECISION DENYING MOTION TO DISGORGE FEES
Before the Court is the motion of the chapter 7 Trustee,. Fred Hjelmeset, for disgorgement of $10,500 in interim attorney’s fees paid to Debtor’s former chapter 11 counsel, David Levin. The Trustee is represented by attorney Gregg Kleiner. Mr. Levin, who opposes the motion, appears pro se.
This case was filed as a chapter 11 on January 12, 2012. The case'was converted to chapter 7 on June 2, 2014, at the request of the United States Trustee (“UST”), for lack of an ability to reorganize and for the Debtor’s failure to keep current with monthly operating reports.
On March 11, 2013, while this case was in chapter 11, and more than 14 months before the case was converted to chapter 7, the Court approved Mr. Levin’s request for interim fees of $48,132 and expenses of $188.51. To these amounts, Mr. Levin applied a retainer he was holding in the amount of $20,836. That retainer was subject to an attorney’s lien in favor of Mr. Levin, which the Trustee does not contest. Mr. Leviri also received periodic payments from the Debtor totaling $10,500, leaving unpaid fees and expenses totaling $16,984.51. The Trustee seeks disgorgement of…