A gray area in the law? Recent developments relating to conflicts of interest and the retention of attorneys in bankruptcy cases

The existence of conflicts of interest impacts on the initial decision whether to approve the retention of attorneys in a bankruptcy case, and it provides cause to disqualify or deny fees to attorneys who have not disclosed the existence of conflicts. Attorneys must at all times conduct themselves in accordance with their ethical obligations toward their clients. The most frequently encountered problem in the case law is probably the failure to disclose the existence of conflicts of interest. This article is intended to be used as a quick reference to current decisions, rather than to provide a studied analysis of the state of the law.