Recent Rulings May Make Attorney's Fees Recoverable on Unsecured Claims

    My friend Bob Eisenbach over at Cooley Goodward has been writing about the potential for unsecured creditors to recover attorney’s fees in connection with claims in which the recovery of the fees is allowed by contract or statute outside of bankruptcy (see here).

    This is a complicated issue with conflicting court decisions, but Bob speculates that we may see more and more unsecured creditors including these fees in their proofs of claim.

    Bankruptcy attorney Scott Riddle states in his blog, “The bottom line in these cases is that unsecured creditors will (and probably should) include attorneys fees as part of their claim, at least until the other Circuit Courts rule on the issue.” See Scott’s article here.