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In the Matter of Jones

United States Court of Appeals, Fifth Circuit
Jan 4, 1982
665 F.2d 60 (5th Cir. 1982)

Summary

applying pre-1979 Bankruptcy Act

Summary of this case from Matter of Ryan

Opinion

No. 81-3322. Summary Calendar.

January 4, 1982.

John M. Holahan, New Orleans, La., for appellant.

James M. Nielsen, trustee.

Appeal from the United States District Court for the Eastern District of Louisiana.

Before GEE, GARZA and TATE, Circuit Judges.


This appeal presents the question whether an attorney for the bankrupt is entitled to compensation out of the bankrupt estate for services rendered to the bankrupt in defeating the oppositions to discharge filed by several creditors. The trial court held that attorneys' fees for such services are not payable out of the estate. We agree. Because the bankruptcy at issue in this appeal was filed prior to the effective date of the new bankruptcy code, prior law applies. Under the terms of the previous Bankruptcy Act, attorneys' fees are allowed only to compensate for professional services rendered in connection with the preservation of the estate. 11 U.S.C. § 104(a)(1), repealed October 1, 1979. The granting or denial of a discharge is personal to the bankrupt and has nothing to do with the preservation of the estate. This court has stated that "legal services designed to benefit the bankrupt personally may not be compensable out of the estate." In Re Orbit Liquor Store, 439 F.2d 1351, 1354 (5th Cir. 1971). The Second and Tenth Circuits have specifically held that attorneys' fees related to defending against objections to the discharge are not payable out of the estate. In Re Rothman, 85 F.2d 51 (2d Cir. 1936), Lewis v. Fitzgerald, 295 F.2d 877, 879 (10th Cir. 1961). This view is hereby adopted as the rule of the Fifth Circuit.

AFFIRMED.


Summaries of

In the Matter of Jones

United States Court of Appeals, Fifth Circuit
Jan 4, 1982
665 F.2d 60 (5th Cir. 1982)

applying pre-1979 Bankruptcy Act

Summary of this case from Matter of Ryan
Case details for

In the Matter of Jones

Case Details

Full title:IN THE MATTER OF GREGORY BYNNER JONES, SR., BANKRUPT

Court:United States Court of Appeals, Fifth Circuit

Date published: Jan 4, 1982

Citations

665 F.2d 60 (5th Cir. 1982)

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