Debt limits under §109(e) may block Debtor's right to convert to Chapter 13 In re Hansen (Bankr. N.D. Ill.) A Debtor has an absolute right to convert from Chapter 7 to 13 -- but only so long as he/sheis eligible to be a Chapter 13 Debtor under the Code. In other words, the Schedules constitute presumptive evidence of the Debtor's liabilities as of the Petition filing date, such that if they show the Debtor to be ineligible for Chapter 13 on the Petition date then post-Petition reductions in liabilities cannot remedy that problem. Why? Because the Code states that eligibility is measured on and determined at the Petition date. Note: This situation is to be distinguished from that in which a claim that is unliquidated on the date of filing becomes liquidated post-Petition; the only kinds of debts that count for eligibility under §109(e) are those, including tax claims, that were liquidated as of the date of filing. For example, a tax liability, the amount of which has not been determined, that is unliquidated on date of filing may be liquidated post-Petition through litigation of the claim, or through a compromise, but such a claim need not be included in the § 109(e) count. _____________________ Debtor's Attorney may be deemed it's agent for service of process In re Focus Media Inc. (9th Cir. 2004) In an adversary proceeding a Lawyer can be deemed to be a Client's implied agent to receive service of process when the Lawyer repeatedly represented that Client in the underlying Bankruptcy case and the totality of the circumstances demonstrates the intent of the Client to convey such authority. _____________________ A "failed business" may turn out to not be a proper Chapter 11 candidate In re Liberate Technologies (Bankr. N.D. Ca. 2004) Though a Debtor’s business is unsuccessful, dismissal of the Debtor's voluntary Ch. 11 case is appropriate where the Debtor has cash well in excess of its liabilities and does not need Bankruptcy protection to avoid the wasteful liquidation of its business assets. ______________________ Time spent by Paralegals on "routine tasks" not compensable In re Fibermark, Inc. (Bankr. Vt 2004) Where a professional fee applicant affirms that it bills its non-Bankruptcy clients for reasonable CALR usage charges, such charges are reimbursable in Bankruptcy cases. Travel charges are allowed at 1/2 of the timekeeper's normal hourly rate. Para-Professional time devoted to administrative activities such as mailing or delivering papers, photocopying, word processing and organizing files constitutes overhead that is not compensable form the Estate. "After hours support" also constitutes overhead not compensable form the Estate.