Bombshell USTP memo finally blesses bifurcated Chapter 7 bankruptcies!

Bankruptcy Law Success

The great news is that the U.S. Trustee Program has finally blessed bifurcated Chapter 7 bankruptcies, as long as they're done properly! Here's the key sentence from the memo: "Absent contrary local authority, it is the USTP's position that bifurcated fee agreements are permissible so long as the fees charged under the agreements are fair and reasonable, the agreements are entered into with the debtor's fully informed consent, and the agreements are adequately disclosed." So in this podcast episode, I give my overall reaction to this apparent paradigm shift in the UST's attitude towards bifurcation. Also, it's a five page memo with 22 footnotes, so I also want to review the USTP's new positions on all the little things that make bankruptcy such a detail-oriented practice. Most important, for the first time ever, the USTP is actually giving us a perfect roadmap to follow so that we can offer bifurcated Chapter 7 in bankruptcies 100% safely! So it's very important that in the new USTP memo, the USTP articulates for the first time its position on many of these specific issues involved in bifurcation. So all we need to do now is understand the USTP positions and act accordingly, and we'll be able to offer bifurcated chapter 7 bankruptcies safely , without worry that our local UST will come after us. So with that in mind, this podcast episode reviews the 14 positions that the USTP articulates in its memo, and lays out that perfect roadmap for any bankruptcy lawyer to follow!