Bank Could not Recover its Law Firm’s Fees and Expenses to Set Aside Post-Petition Foreclosure Sale under Fed. R. Bankr. Proc. 3002.1

Bank Could not Recover its Law Firm’s Fees and Expenses to Set Aside Post-Petition Foreclosure Sale under Fed. R. Bankr. Proc. 3002.1

The debtor filed this Chapter 13 case two days before a scheduled foreclosure sale of the debtor’s home. Unfortunately, the mortgage creditor did not know about the bankruptcy case until after the sale was held. The home was sold at foreclosure sale to an unrelated third party. Once the mortgage creditor learned of the bankruptcy case, it agreed to set aside the foreclosure sale. The mortgage creditor filed a notice of post-petition attorney fees. The debtor objected. The United States Trustee (“UST”) also objected.

 

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