11 U.S.C. § 101

Section 101(14)(E) excludes counsel from the definition of a disinterested person when its relationship with a creditor creates a predisposition to favor that creditor over the estate.

In Re Premier Farms, LC · filed 2003-12-16(14)(E)

I find and conclude that Sonnen-schein has an adverse interest and is therefore not disinterested, because it has a predisposition to bias in favor of Bank.

Section 101(14)(E) excludes an examiner from the definition of “disinterested person” when compensation tied to one creditor’s recovery creates a materially adverse interest.

Vergos v. Schilling · filed 2004-01-08(14)(E)

An agreement with a single creditor that links the examiner’s compensation to the creditor’s recovery qualifies as such an interest because it creates the risk that the examiner will favor one creditor at the expense of other creditors, to say nothing of all equity holders.

An examiner is not disinterested if compensation tied to one creditor’s recovery creates a risk of favoring that creditor over others.

United States ex rel. Rural Utilities Service of the Department of Agriculture & the United States Trustee v. Schilling · filed 2004-01-08(14)(E)

An agreement with a single creditor that links the examiner’s compensation to the creditor’s recovery qualifies as such an interest because it creates the risk that the examiner will favor one creditor at the expense of other creditors, to say nothing of all equity holders.

Section 101(14)(E) disqualifies an examiner who has a materially adverse interest, including a fee agreement tied to one creditor’s recovery, even without proof that the examiner acted on the conflict.

United States ex rel. Rural Utilities Service of the Department of Agriculture & the United States Trustee v.… · filed 2004-01-08(14)(E)

That self-interest might lead examiners to act in these ways suffices to disqualify them, because the Code does not merely prohibit trustees and examiners from acting upon materially adverse interests, it prohibits trustees and examiners from having them.

A professional who received an avoidable preference may be ineligible for employment under the disinterested-person definition, even if the amount is small.

Movitz v. Baker (In Re Triple Star Welding, Inc.) · filed 2005-04-28(14)

Trustee has also made a facially plausible claim that Baker did in fact receive a preference. Under Section 502(d), Baker’s administrative claim for fees cannot be paid until he returns any avoidable preference; and under Sections 101(14) and 327(a) any preference may make Baker ineligible for employment, and hence for compensation.

An LLC may qualify as a disinterested person under § 101(14) even when its members are employees or officers of the debtor.

In Re: Quaker City v. · filed 2005-11-18(14)

The term “disinterested person” is defined by the Code as one who “is not a creditor, an equity security holder, or an insider” and who “is not and was not, within two years before the date of the filing of the petition, a director, officer, or employee of the debtor . . . .” 11 U.S.C. § 101(14)(A) & (D). As a limited liability company, separate and distinct from its members, Foundry is none of these things. ... However, this indirect relationship between the members of Foundry and the Debtors, which was fully disclosed to the bankruptcy court, does not preclude a finding that Foundry was “disinterested.”

Section 101(14) does not make a professional ineligible as a disinterested person merely because the professional holds a security retainer for fees not yet incurred.

Rus, Miliband & Smith v. Yoo (In Re Dick Cepek, Inc.) · filed 2006-03-21(14)

Second, holding a security retainer does not per se disqualify Appellant. A "creditor" is not "disinterested." See 11 U.S.C. § 101(14). But retention of a security interest to secure payment of fees not yet incurred does not render a professional a "creditor."

Section 101(14) excludes a professional with a potential prepetition claim against the debtor from the definition of a disinterested person, even if the claim has not been adjudicated.

In Re Kings River Resorts, Inc. · filed 2006-03-15(14)

A professional holding a potential prepetition claim against a debtor for damages, based on any legal theory under applicable law, is a creditor of the estate and therefore not “disinterested” even if that claim has not been reduced to a cause of action or adjudicated against the debtor.

A lawyer is not disinterested under § 101(14)(E) if the lawyer holds or represents an interest materially adverse to the estate.

Tevis v. Wilke, Fleury, Hoffelt, Gould & Birney, LLP (In Re Tevis) · filed 2006-08-07(14)(E)

For the purposes of disinterestedness, a lawyer has an interest materially adverse to the interest of the estate if the lawyer either holds or represents such an interest.

Section 101(14)(E) treats an attorney who represents general unsecured creditors as not disinterested for employment as a trustee’s general counsel.

In Re Midway Motor Sales, Inc. · filed 2006-10-18(14)(E)

In the instant case, there is no question that Gallo is not a disinterested person, as defined by section 101(14)(E), because of his representation of the Mer-cures, who are general unsecured creditors. As a consequence, Trustee would be prohibited from employing Gallo as her general counsel to help her to carry out her duties as trustee.

Section 101(14)(E) requires a fact-specific, totality-of-circumstances inquiry into whether a trustee has an interest materially adverse to the estate.

Dye v. Brown (In Re AFI Holding, Inc.) · filed 2006-10-25(14)(E)

Having adopted the totality-of-circumstances approach to determine lack of disinterestedness under § 101(14)(E) as cause under § 324, we now examine the facts and procedure in our case.

A debtor’s directors are not disinterested persons eligible for employment as bankruptcy professionals.

In Re Fortune Natural Resources Corp. · filed 2007-04-12(14)(A), (31)(B)(i)

By definition, directors of a debtor are not disinterested, and so the directors here would not have been eligible to be employed and receive payment for the duties they have performed that were beyond the scope of traditional director’s duties.

An attorney is not disinterested when a genuine risk that duties in another case will impair the attorney’s work with the debtor’s management creates an interest materially adverse to the estate.

Weinstein, Eisen & Weiss v. Katzman (In re Lincoln Hospital Medical Center, Inc.) · filed 2007-04-18(14)(E)

Under the version of the Code applicable to this ease, an attorney is disinterested if the attorney “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(14)(E) (2000). ... It is not necessary that such possibilities were a certainty; it is enough if there was any genuine risk that counsel’s ability to work with the principals of Lincoln might be impaired. In light of the broad discretion of a bankruptcy court to approve counsel for a debtor with the interest of the estate in mind, we conclude that the bankruptcy court did not abuse its discretion in rejecting Lincoln’s application to employ WEW as its bankruptcy counsel.

Section 101(14) excludes a creditor of the debtor from the definition of a disinterested person.

In Re Perez · filed 2008-06-12(14)

The statutory qualifications for the latter are less stringent: no adverse interest to the debtor on the particular matter vs. the full blown statutory "disinterestedness” of 11 U.S.C. § 101(14). Applicant was not a "disinterested person” because he was a creditor of the Debtor when the case was filed. Thus, he could not have qualified for appointment under section 327(a).

Section 101(14)(E) includes in its definition of a disinterested person a trustee whose interests or relationships could even faintly color the independence and impartial attitude required by the Bankruptcy Code.

Dye v. Brown · filed 2008-06-16(14)(E)

The BAP held that (1) “cause” may include a lack of disinterestedness; (2) the catch-all provision of 11 U.S.C. § 101(14)(E) defining a “disinterested person” is “broad enough to include a trustee with some interest or relationship that ‘would even faintly color the independence and impartial attitude required by the Code,’ ” ... We are persuaded by the BAP’s analysis, adopt it as our own, and attached it as Appendix A.

Section 101(14)(E) requires a fact-specific assessment of whether a trustee’s relationships create a materially adverse interest.

AFI Holding, Inc. v. Brown · filed 2008-06-17(14)(E)

Having adopted the totality-of-circumstances approach to determine lack of disinterestedness under § 101(14)(E) as cause under § 324, we now examine the facts and procedure in our case.

A professional's relationship with a prospective lender does not defeat disinterestedness under § 101(14) without a meaningful incentive to act against the estate.

In Re El Comandante Management Co., LLC · filed 2008-09-02(14)

Hence, section 101(14) requires that professionals be free of any "scintilla of personal interest" which might impact their decisions in estate matters. ... As such, Appellee did not have a meaningful incentive to act contrary to the Debtors' best interests even though FirstBank was one of Appellee's principal client in other matters not related to the present case.

Section 101(14) requires bankruptcy professionals to be free of personal interests that might affect their decisions for the estate.

Drew v. Latimer, Biaggi, Rachid & Godreau · filed 2008-09-02(14)

Hence, section 101(14) requires that professionals be free of any “scintilla of personal interest” which might impact their decisions in estate matters.

An auctioneer may be a disinterested person under § 101(14) when it buys no estate property and its affiliate’s role as sales agent is disclosed.

Herzog Ex Rel. Cornerstone Creditors' Trust v. Stopol, Inc. (In Re Cornerstone Products, Inc.) · filed 2008-09-30(14)

Here, Cornerstone’s Employment Application disclosed the proposed arrangement for compensating Stopol Auctions, LLC, among other things, and Mr. Kruschke submitted an affidavit in connection with the Employment Application in which he stated that Stopol Auctions, LLC was “disinterested” within the meaning of §' 101(14) of the Bankruptcy Code. The Court, following a hearing on the Employment Application, approved the retention of Stopol Auctions, LLC to serve as Cornerstone’s auctioneer. Stopol Auctions, LLC did not purchase any of Cornerstone’s property before, during or after the auction. Moreover, the Employment Application attached a copy of the Auction/Liquidation Agreement in which Sto-pol, Inc.’s role as Cornerstone’s sales agent was described. The Court finds and concludes that, under the circumstances of this case, Stopol Auctions, LLC was a “disinterested person” within the meaning of § 327(a) of the Bankruptcy Code at all relevant times.

Section 101(14)(C) asks whether the professional itself has a materially adverse interest; past representation of a party with such an interest does not by itself defeat disinterestedness.

In Re Champ Car World Series, LLC · filed 2008-10-10(14)(C)

Its sole focus is whether prospective counsel itself “has” a materially adverse interest, not whether it now or at some point in the past “represented” a party with a materially adverse interest.

Section 101(14)(C) excludes a lawyer from being a disinterested person when a conflict with a creditor materially compromises the lawyer’s independence.

In Re Teknek, LLC · filed 2008-10-20(14)(C)

Levin’s re-employment as special counsel to the Trustee is substantially related to his prior representation of SDI, as each matter involves the Teknek entities’ ... efforts to avoid enforcement of the $3.8 million judgment, rendering him not a “disinterested person” under §§ 101(14) and 327(a).

Section 101(14) excludes creditors from the definition of a disinterested person; waiving prepetition claims can remove that disqualification.

In Re American Home Mortgage, Holdings, Inc. · filed 2008-10-31(14)

Indeed, such a waiver was necessary for the Court to find Northwest Trustee to be a "disinterested party person.”

Section 101(14)(C) disqualifies a prospective trustee for a materially adverse interest the trustee personally holds.

In Re Petters Co., Inc. · filed 2009-02-26(14)(C)

Section 101(14)(C) uses the verb “have,” a word that denotes possession, in a personal capacity.

Section 101(14)’s definition of a disinterested person does not automatically exclude an attorney who previously represented a creditors’ committee.

In Re Kobra Properties · filed 2009-06-01(14)

If an attorney may be “disinterested” despite representing a creditor, it follows that the Felderstein Fitzgerald firm’s prior representation of the creditors’ committee does not render the firm per se ineligible for employment as not “disinterested.”

A trustee’s representative or fiduciary roles do not by themselves create a materially adverse personal interest that defeats disinterestedness.

Ritchie Special Credit Investments, Ltd. v. U.S. Trustee · filed 2009-09-08(14)(C)

Courts have interpreted this definition to apply only to personal interests of the trustee and not to the interests attributed to a trustee in his or her representative or fiduciary capacity. ... Accordingly, Kelley’s dual roles as receiver and trustee do not give rise to a materially adverse interest that would disqualify him from serving as trustee for the Petters Debtors.

Section 101(14)(C) disqualifies counsel as a disinterested person only when the adverse interest is material; payment of a retainer by related parties does not itself disqualify counsel.

In Re Pinebrook, LLC · filed 2009-11-18(14)(C)

Here, though, the interest that is adverse must be “materially adverse”. ... In this case, the court is satisfied that any adverse interest between the parties who provided the retainer is not material. They do not have any effective manner in which to control the debtor or counsel in the discharge of their duties.

Section 101(14)(C) excludes a person from the definition of “disinterested person” if the person has an interest materially adverse to the estate or a class of creditors or equity holders for any reason.

In Re 7677 East Berry Avenue Associates, L.P. · filed 2009-11-19(14)(C)

In addition, § 101(14) provides not only may disinterestedness be defeated by an interest materially adverse for one of the specific reasons delineated in the statute, but also “for any other reason.”

Section 101(14) excludes a professional with an interest materially adverse to a debtor’s estate or its creditors from the definition of a disinterested person.

Raymond Professional Group, Inc. v. William A. Pope Co. (In Re Raymond Professional Group, Inc.) · filed 2009-12-17(14)

Under the Bankruptcy Code, the term disinterested person means a person that: ... (C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason. ... In such a situation, the attorney would represent an interest—that of the preferred debtor-in-possession—adverse to the forsaken debt- or-in-possession and its creditors, a disqualifying conflict.

Section 101(14) excludes insiders from disinterested-person status, but a lawyer’s status depends on the lawyer’s own relationship to the debtor, not a client’s insider status.

Blumenthal v. Myers · filed 2010-04-02(14)

As close relatives of the Debtor M&M’s principal,11 the Petitioning Creditors are “insiders” of the Debtor, and under the terms of § 101(14), insiders are not disinterested persons. ... Whether an attorney (or law firm) is disinterested is solely a function of the attorney’s relationship to the debtor.

Section 101(14) excludes insiders from the definition of disinterested persons, but an attorney’s status depends on the attorney’s own relationship to the debtor.

Blumenthal v. Myers (In Re M & M Marketing, L.L.C.) · filed 2010-04-02(14)

Blumenthal is correct that the Petitioning Creditors would not qualify as disinterested under § 101(14). ... Whether an attorney (or law firm) is disinterested is solely a function of the attorney’s relationship to the debtor.

A lawyer whose relationships with a debtor’s principal and family create interests adverse to the estate is not a disinterested person.

In Re N. John Cunzolo Associates, Inc. · filed 2010-02-23(14)(c)

A “disinterested person” is, in-turn, defined under the Bankruptcy Code as a person who “does not have an interest materially adverse to the interest of the estate or of any class of creditors ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” ... As a result, the Court finds that proposed counsel holds an interest adverse to the bankruptcy estate and is not disinterested by virtue of the Robert 0 Lampl law firm’s relationship with N. John Cunzolo and the corresponding indirect relationship with Ms. Cunzolo, Mr. Cevario, and JC Pierce, LLC (which is the entity in which Mr. Cevario holds an equity interest).

Section 101(14)(C) excludes counsel from the definition of a disinterested person when counsel’s conflicting interests are materially adverse to a bankruptcy estate.

Straughn v. No (In Re Straughn) · filed 2010-05-05(14)(C)

A disinterested person is one that “does not have an interest materially adverse to the interest of the estate .... by reason of any direct or indirect relationship to, connection with, or interest in the debtor, or for any other reason.” ... Under these facts, Proposed Counsel, is not a disinterested person but holds an interest adverse to the bankruptcy estate.

Section 101(14)(C) defines a disinterested person as one without an interest materially adverse to the estate or any class of creditors.

In Re Project Orange Associates, LLC · filed 2010-06-23(14)(C)

Under section 101(14)(C) a disinterested person is one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors” for any reason. 11 U.S.C. § 101(14)(C). This definition overlaps with the adverse interest requirement of section 327(a), creating a single test for courts to employ when examining conflicts of interest.

Section 101(14) does not exclude counsel from being a disinterested person solely because counsel also represents the debtor’s shareholder who guaranteed its secured debt, when the conflict is only potential.

In Re: Jade Management Services · filed 2010-07-09(14)

Paragraphs (A) and (B) are inapplicable here; the question is whether D’Anna’s concurrent representation of Benjamin and Jade in their respective bankruptcy cases caused D’Anna to have an interest that was materially adverse to, or created an actual conflict of interest with, Jade’s secured creditors. ... Under the particular factual circumstances of this case, there existed at most a potential conflict of interest inherent in D’Anna’s concurrent representation of the debtor-in-possession and its sole shareholder who had guaranteed the debtor’s secured debt.

A creditor’s payment of debtor’s counsel’s retainer does not automatically make counsel a person with a materially adverse interest; the arrangement must be assessed on its facts.

Waldron v. Adams & Reese, LLP (In Re American International Refinery, Inc.) · filed 2010-08-27(14)

The court agrees with the ... court that such payment arrangements — whether direct or indirect — do not automatically create a disqualifying interest or conflict.

Section 101(14)(A) excludes creditors from the definition of a disinterested person, but prior employment by the debtor alone does not make a professional disinterested.

In Re Talsma · filed 2010-09-17(14)(A)

Nothing in the language of sections 327(a) and 101(14)(A) provides that a professional is not disinterested (or otherwise disqualified from retention) merely because of prior employment by the debtor. Rather, only a professional with a greater stake in the bankruptcy, such as one occupying the position of creditor, equity security holder, or insider, is deemed not disinterested by the plain meaning of sections 327(a) and 101(14)(A).

A trustee may qualify as a disinterested person despite also serving as receiver when that role creates no materially adverse interest.

RITCHIE SPECIAL CREDIT INVESTMENTS v. US Trustee · filed 2010-09-02(14)(C)

Likewise, we do not perceive Kelley’s role as receiver as creating a material adverse interest. As an initial matter, Kelley does not have personal interests adverse to PGW. Even if the definition of disinterested were read to include representative as well as personal interests, we nonetheless conclude that Kelley qualifies as disinterested.

Section 101(14)(C) does not disqualify a trustee as an interested person merely because the trustee also serves as receiver, absent a materially adverse interest.

Ritchie Special Credit Investments, Ltd. v. United States Trustee · filed 2010-09-02(14)(C)

Likewise, we do not perceive Kelley’s role as receiver as creating a material adverse interest. As an initial matter, Kelley does not have personal interests adverse to PGW. Even if the definition of disinterested were read to include representative as well as personal interests, we nonetheless conclude that Kelley qualifies as disinterested.

Section 101(14)(C) excludes a person with an interest materially adverse to the estate or any class of creditors from the definition of a disinterested person.

In Re JMK Construction Group, Ltd. · filed 2010-12-09(14)(C)

Bankruptcy Code § 101(14) defines disinterested persons. Under section 101(14)(C) a disinterested person is one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors” for any reason. 11 U.S.C. § 101(14)(C). This definition overlaps with the adverse interest requirement of section 327(a), creating a single test for courts to employ when examining conflicts of interest.

Section 101(14)(C) defines a disinterested person by the absence of a materially adverse interest; a potential conflict alone does not establish that a trustee is not disinterested.

Search Market Direct, Inc. v. Jubber (In Re Paige) · filed 2010-10-21(14)(C)

The Bankruptcy Code defines “disinterested person” as one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(C). ... While the potential of a conflict may have justified further inquiry by the bankruptcy court, under the facts of this case, it did not itself warrant a finding that the trustee was not disinterested.

Section 101(14)(E) requires a professional to personally have a materially adverse interest; representing a creditors’ committee alone does not make the professional interested.

In Re Age Refining, Inc. · filed 2011-02-22(14)(E)

Just as Martin & Drought does not “hold” any interest adverse to the estate under the “adverse interest” prong of section 327(a), the firm does not “have” any such interest within the meaning of section 101(14)(E), and so “is not rendered ‘interested’ on that basis.”

Section 101(14) excludes insiders and people with materially adverse interests from the definition of a disinterested person.

In Re Liebfried Aviation, Inc. · filed 2011-02-25(14)

I will deny the application for compensation because Mr. O’Donnell is not a disinterested person as required by the Bankruptcy Code, 11 U.S.C. § 101 et seq. ... Among other things, a “disinterested person” cannot be “a creditor, equity security holder, or an insider:” of the debtor nor can he “have an interest materially adverse to the interest of the estate or any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or for any other reason.” 11 U.S.C. § 101(14)(A) and (C).

A professional is not disinterested if its relationship with the debtor or a creditor gives it an interest materially adverse to the estate or creditors.

In Re Harris Agency, LLC · filed 2011-06-03(14)(c)

The Code defines a “disinterested person” as one who “does not have an interest materially adverse to the interest of the estate or any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(c). ... Applying the above law to the facts at hand, the Court finds that Winterhalter had an actual conflict of interest as of March 10, 2009, the date on which it entered an appearance in District Court on behalf of Union One, less than two months after the Debtor filed this case.

Section 101(14)(C) does not make a professional interested merely because it represents a party with an adverse interest.

In re Fullenkamp · filed 2011-08-31(14)(C)

But a professional does not run afoul of Section 101(14)(C) — in other words, the professional is not interested — -simply because it represents a party holding an adverse interest. Because Hahn Loeser does not have an adverse interest, the Court concludes it is disinterested under Section 101(14)(C).

A professional with a contingent prepetition claim is a creditor and is not a disinterested person under § 101(14).

In re Ginaldi · filed 2011-11-16(14)

In these circumstances, I conclude that Addison Wolfe’s holds a contingent claim and is not disinterested.

Section 101(14)(A) excludes a creditor from the definition of a disinterested person, including an attorney owed fees for work performed before the bankruptcy petition.

Kun v. Mansdorf (In Re Woodcraft Studios, Inc.) · filed 2011-12-22(14)(A)

Any creditor of the estate, or anyone with “an interest materially adverse to the interest of the estate ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor,” is not a disinterested person. 11 U.S.C. §§ 101(14)(A), (C). ... Based on the factual record, which included a contract for payment of a $5,000 retainer signed seven days after the petition was filed and a fee application indicating that Mr. Kun had done work for the debtor pre-petition, the Court’s finding that Mr. Kun was not disinterested was not clearly erroneous.

Prior representation of a debtor and a speculative future conflict do not, without an actual adverse interest, prevent an attorney from being a disinterested person under § 101(14).

In re Hash · filed 2012-06-14(14)

“Disinterested person” is defined under 11 U.S.C. § 101(14) as the following: ... The Court is convinced that Black is “disinterested” within the meaning of the statute. ... There is no actual conflict in existence and there is no basis or authority for declining the Trustee’s Application on the mere possibility that a conflict may arise at some point in the future. ... L & N has no basis to claim that Black is materially adverse to the interest of the estate because he has represented the Debtor in legal matters in the past.

Section 101(14)(A)’s definition of a disinterested person, read with § 1107(b), does not automatically disqualify proposed counsel because of an indirect interest in estate proceeds; the court considers the totality of the circumstances.

In re SBMC Healthcare, LLC · filed 2012-06-18(14)(A)

This Court disagrees. Sections 327(a) and 101(14)(A) must be read in conjunction with another section of the Code: § 1107(b). This latter provision relaxes what is a rigid rule if one were to read only § 327(a) and § 101(14)(A).

A debtor’s owner paying the debtor’s obligation to counsel does not, by itself, prevent counsel from being a disinterested person.

In re Living Hope Southeast, LLC · filed 2012-08-06(14)

The Court does not believe the payment of an obligation of the Debtor by one of Debtor’s owners creates an adverse interest on the part of the counsel receiving the payment, or that such payment prevents counsel from being disinterested.

Section 101(14) treats an attorney without a personal conflict with the debtor as disinterested.

In re Living Hope Southeast, LLC · filed 2012-10-04(14)

The Court previously found that Smith did not personally have any conflicts with the Debtor. ... Accordingly, Smith is disinterested as defined in 11 U.S.C. § 101(14).

A creditor’s filing of an adversary proceeding against a trustee does not, by itself, make the trustee lack disinterestedness.

In re Tres-Ark, Inc. · filed 2012-11-21(14)

Such a filing against a trustee does not constitute a lack of disinterestedness.

Section 101(14)(C) does not treat counsel as having a materially adverse interest merely because counsel advocates a position against some creditors or equity holders.

In re Sonya D. International, Inc. · filed 2012-12-14(14)(C)

As noted above, general bankruptcy counsel litigate against creditors and others all the time, so that cannot be what the statute means by a “materially” adverse interest to classes of creditors or equity holders.

Section 101(14)(C) excludes a person with a present interest materially adverse to the estate or a class of creditors from the definition of a disinterested person.

In re Persaud · filed 2013-01-30(14)(C)

Finding no “other reason,” see 11 U.S.C. § 101(14)(C), to conclude that Troutman presently holds an interest adverse to the estate or to any class of creditors, I affirm the district court’s decision and hold that Troutman satisfied its burden under § 327(a) to establish that the firm does not hold or represent an interest adverse to the estate, and that the firm is disinterested.

Under § 101(14)(C), a law firm's representation of a creditor pursuing a partner's personal debt does not make the firm materially adverse to the partnership's bankruptcy estate.

Bon-Air Partnership v. Trumble · filed 2013-04-11(14)(C)

Thus, the fact that the law firm represented Wells Fargo in an action against Rahmi personally is not an interest “materially adverse” to the partnership’s bankruptcy estate, and Rahmi’s arguments to the contrary are far too attenuated to gain traction.

Under § 101(14), counsel’s later representation of parties against the debtor did not destroy its disinterestedness where, on these facts, it created no materially adverse interest to the estate.

In re Arazi · filed 2013-04-09(14)

After serious reflection and with the benefit of hindsight, the Court concludes that the actions of L & G in representing Houle and Ziegler, in this case and limited to its facts, did not constitute the representation of a materially adverse interest to the estate or a lack of disinterestedness.

Section 101(14)(E) excludes a person with an interest materially adverse to the estate or a creditor from the definition of a disinterested person.

In re Grasso · filed 2014-01-17(14)(E)

Accordingly, one ceases to be a “disinterested person” when one acquires “an interest adverse to the estate” or “an interest adverse to a creditor.”

A debtor’s current director is not a disinterested person under § 101(14).

In re Copenhaver, Inc. · filed 2014-03-11(14)

Here, the Debtor seeks to employ a current director who is, by definition, not disinterested. See 11 U.S.C. § 101(14). Mr. Moravec also has a potential conflict of interest because he now works for an unsecured creditor. Thus, he is clearly ineligible to be employed under § 327.

Section 101(14) excludes an attorney with an unpaid prepetition fee claim against the debtor from the definition of a disinterested person.

In re: Malcolm D. Owens · filed 2014-08-06(14)

The Code defines a “disinterested person” as a person that is not a creditor and “does not have an interest materially adverse to the interest of the estate . . . by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14); see also First Interstate Bank of Nev., N.A. v. CIC Inv. Corp. (In re CIC Inv. Corp.), 192 B.R. 549, 553 (9th Cir. BAP 1996). ... The bankruptcy court correctly determined that Akintimoye was a prepetition creditor. Akintimoye does not dispute that there remained unpaid legal fees from the first case. As a result, he was a prepetition creditor. See 11 U.S.C. § 101(10)(A) (creditor is an “entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor.”); § 101(5)(A) (claim is a right to payment). And, therefore, Akintimoye was not disinterested for the purposes of § 327(a).

Under § 101(14)(C), an attorney’s interest adverse to creditors or equity holders must be material to defeat disinterestedness.

Kennedy v. Skadden, Arps, Slate, Meagher & Flom LLP (In re Radnor Holdings Corp.) · filed 2014-08-13(14)(C)

As defined by the Bankruptcy Code, attorneys are disinterested if they “do[] not have an interest materially adverse to the interest of ... any class of creditors or equity holders....” 11 U.S.C. § 101(14)(C); see Pillowtex, 304 F.3d at 252 n. 4. ... The court finds no error was committed by the bankruptcy court in granting Skadden’s final fee application.

Section 101(14)(C) defines a disinterested person as one without an interest materially adverse to the estate or its creditors or equity security holders.

In re Belmonte · filed 2015-01-28(14)(C)

A person is disinterested under the Bankruptcy Code if he or she “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(C). ... Thus, there is nothing in the record before this Court to support Debtor’s contentions that RMMM is not disinterested, holds an adverse interest to the estate, or has a direct conflict of interest to the estate with respect to the scope of its retention.

Section 101(14)(A) excludes a person holding a prepetition claim against the debtor from the definition of a disinterested person.

In re Shafer Bros. Constr. Inc. · filed 2015-01-14(14)(A)

Importantly, an entity holding a prepetition “claim,” which includes a “right to payment,” 11 U.S.C. § 101(5), against the debtor is not a “disinterested person.” 11 U.S.C. § 101(14)(A).

Section 101(14) permits a professional to be disinterested when potential conflicts are too remote to create a materially adverse interest.

In re Hutch Holdings, Inc. · filed 2015-03-31(14)

A disinterested person is, inter alia, one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(14). ... The Court finds that the McCallar Firm’s concurrent representation of the debtors did not create an actual conflict of interest and the potential conflicts of interest did not rise to the level of a disqualifying interest.

Section 101(14) excludes creditors, equity security holders, insiders, and people with interests materially adverse to the estate or a class of creditors or equity security holders from the definition of a disinterested person.

In re Caesars Entertainment Operating Co. · filed 2015-05-28(14)

As Crivello observed, section 101(14) defines a “disinterested person” in part as one who “is not a creditor, an equity security holder, or an insider” and who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest, in the debtor ... or for any other reason.” 11 U.S.C. § 101(14). ... The application and verified Seligman statements, together with Sprayregen’s testimony at the hearing, were prima facie proof .that Kirkland was disinterested and neither held nor represented an interest adverse to the estates.

A professional is not disinterested if a relationship with the debtor gives the professional an interest materially adverse to the estate.

Ressler v. Harrington (In re Gold) · filed 2015-06-18(14)

Section 101(14) of the Bankruptcy Code defines a disinterested person as one who “does not have an interest materially adverse to the interest of the estate ... by reason of any direct or indirect relationship to, connection with, or interest in the debtor.” 11 U.S.C. § 101(14). ... Thus, Mr. Ressler placed himself in a situation where he was representing two clients that have a competing interest in the same property. Even more problematic, he appears to have exhibited a bias towards Mr. Gold. On this basis alone, Mr. Ressler could be denied fees after Mr. Gold’s removal as personal representative of Ms. Gold’s probate estate.

Section 101(14)(C) defines a disinterested person by the absence of a materially adverse interest; the court applied that definition to a professional’s present interest.

In re Ampal-American Israel Corp. · filed 2015-07-27(14)(C)

In particular, there is no basis to conclude that Tarter has a predisposition in favor of Shapira, Mishmeret or anyone else that renders it biased against the estate. For the same reason, Tarter does not “have” a personal interest materially adverse to the estate or anyone else within the meaning of Bankruptcy Code § 101(14)(C).

A disinterested trustee or professional must lack an interest adverse to the bankruptcy estate; an interest adverse only to an individual claimant does not establish a conflict.

Fletcher v. Davis (In re Fletcher International, Ltd.) · filed 2015-09-09(14)(C)

Thus, for there to be a conflict of interest, a Fiduciary would have to hold or represent an interest adverse to FILB while serving as a fiduciary.

Section 101(14) excludes a creditor from the definition of a disinterested person.

In re Thompson's Waterproofing, LLC · filed 2016-01-07(14)

In the Declaration attached to its application for employment, Ciardi certified that it was a “disinterested person” as that term is identified in 11 USC § 101(14). However, one can not be both creditor and a disinterested person by definition.

Section 101(14)(C) excludes a professional with a materially adverse interest from the definition of a disinterested person; speculative future conflicts do not establish such an interest.

In re James F. Humphreys & Associates, L.C. · filed 2016-03-03(14)(C)

Section 101(14)(C) further proscribes the appointment of one with an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason. ... The Court discerns no reasonable basis, at this point, to conclude that Bowles Rice has, or will develop, an interest materially adverse to the estate.

Section 101(14) defines a disinterested person; an asset recovery specialist with no connection to the debtors qualified under that definition.

Blocksom v. Brown (In re Brown) · filed 2016-08-04(14)

Nothing on the record indicates that Blocksom had, or has, any connection to the Debtors. Further, neither the Debtors nor the Trustee have challenged Blocksom’s disinterestedness. For these reasons, Blocksom is a disinterested person now and was at the time he provided his services.

Section 101(14) permits employment of a professional the court finds to be disinterested after reviewing its disclosures.

In re Alpha Natural Resources, Inc. · filed 2016-08-29(14)

Bankruptcy Rule 2014 facilitates the implementation of § 327 and § 101(14) of the Bankruptcy Code. ... The Court thoroughly reviewed the In Camera Disclosures, and it was satisfied that McKinsey RTS had complied in good faith with the Order Compelling Compliance and that McKinsey RTS was a “disinterested person” under the Bankruptcy Code.

Section 101(14)(C) excludes a firm from the definition of “disinterested person” when its relationship with an employee gives it an interest materially adverse to the estate.

In re Young Mens Christian Ass'n of Marquette County · filed 2017-07-14(14)(C)

As the current employer of a natural target of such an investigation, and as an entity with its own reputational interests, Quinnell Law has “an interest materially adverse to the interest of the estate,” even assuming Mr. Sarka is completely blameless.

Section 101(14)(C) requires a professional to personally have a materially adverse interest to fail the disinterested-person test.

In re Wolfson · filed 2018-06-26(14)(C)

The third requirement of this test implicates the "personal interests" of the professional, meaning that the professional must actually "have" such an interest to be considered "interested." ... Nor is there any evidence or argument that Weinman itself holds an interest adverse to the estate or creditors. Thus, the Court concludes that Weinman is "disinterested" for purposes of § 327(a).

Section 101(14) excludes creditors, insiders, recent officers and employees of the debtor, and people with materially adverse interests from the definition of a disinterested person.

In re Thomas · filed 2019-01-18(14)

Here, neither Mr. Thomas nor Clear Channel, Tennison Brothers, or TDOT are disinterested parties.

Section 101(14) excludes creditors from the definition of a disinterested person.

Roy Mitchell Waggoner and Jewel Kay Waggoner · filed 2019-07-31(14)

The Bankruptcy Code defines a “disinterested” person as one who . . . is not a creditor, an equity security holder, or an insider . . . . 11 U.S.C. § 101(14). It is undisputed that Heizer filed a $104,317 proof of claim in this case. Therefore, she is not disinterested and could not be employed as a professional person.

A professional’s disinterestedness depends on whether an adverse interest could prevent impartial decisions in the estate’s best interest, regardless of whether the decisions caused fraud or unfairness.

Fundamental Long Term Care, Inc. · filed 2019-08-21(14)(C)

In evaluating the circumstances surrounding a claim of adverse interest, the issue is whether the professional was able to make unbiased or impartial decisions in the best interest of the estate, regardless whether the decisions actually resulted in fraud or unfairness.

Section 101(14) excludes a creditor from the definition of a disinterested professional.

Brenda Diana Nestor · filed 2019-09-26(14)

Estate professionals must be retained in accordance with 11 U.S.C. §327, which requires, generally, that the estate professional must be “disinterested,” meaning the professional “is not a creditor, an equity security holder, or an insider”. 11 U.S.C. §101(14). ... Clearly the failure of Oppenheim to disclose that it was NOT disinterested is disqualifying, and the Court could deny the Oppenheim Fee Application in full.

Section 101(14) does not disqualify a professional who waived a prepetition claim when a potential preference suit against it is speculative.

Springfield Medical Care Systems, Inc. · filed 2019-11-22(14)

The UST has raised important points with regard to whether BerryDunn is disinterested, but after considering the record as a whole, the Court finds BerryDunn meets the statutory definition of a disinterested person. This is because, first, BerryDunn has waived its pre-petition claim; and second, any potential preference litigation that would pit the Debtor or estate against BerryDunn – and thereby put BerryDunn in the position of holding a materially adverse interest – is at best speculative, and hence, not a disqualifying factor under the caselaw of this Circuit.

Section 101(14) excludes a creditor, or a professional with an interest materially adverse to a class of creditors, from the definition of a disinterested person.

In re: Decade S.A.C., LLC · filed 2020-02-05(14)

The second, contained in the definition of “disinterested person,” prohibits the retention of a creditor and further requires that a professional be free of “an interest materially adverse to the interest of . . . any class of creditors.” 11 U.S.C. § 101(14).

Section 101(14) defines a disinterested person as one without an interest materially adverse to the estate or its creditors because of a relationship with the debtor or for any other reason.

Estate of Arlene Townsend v. Shumaker Loop & Kendrick, LLP · filed 2020-02-27(14)

In relevant part, the term “disinterested” is defined in 11 U.S.C. § 101(14) as a person who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14). ... Thus, the Court concludes that the Bankruptcy Judge did not err in determining that ... Shumaker’s connections with the Lyric entities or HQM did not create a disqualifying conflict of interest in the bankruptcy case.

Section 101(14)(B) excludes a debtor’s director from the definition of a disinterested person.

Woodlawn Community Development Corp. v. Official Committee of Unsecured Creditors · filed 2020-03-27(14)(B)

As a member of WCDC’s Board of Directors, Nixon was not disinterested. See 11 U.S.C. § 101(14)(B) (“The term ‘disinterested person’ means a person that . . . is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor . . . .”).

Section 101(14) does not automatically impute an individual professional’s lack of disinterestedness to the professional’s firm.

McDermott International, Inc. · filed 2020-05-20(14)

The Court agrees with Judge Isgur’s analysis. The Court must presume that Congress meant what it said and will not infer that which clearly does not exist. ... No evidence was offered to suggest that Mr. Castellano’s alleged disinterestedness should be imputed to AP Service or AlixPartners. Under § 101(14)(C), the Court is further required to ensure that AP Services and AlixPartners do not hold a material interest adverse to McDermott or any class of creditors or interest holders. No party alleges and the Court has no evidence of any such adverse interest.

Section 101(14)(C) requires a professional to personally have a materially adverse interest to be disqualified as a disinterested person; a client's adverse interest cannot be imputed to the professional.

Destin Resources LLC · filed 2020-11-06(14)(C)

Accordingly, to violate the requirements of § 101(14)(C), the professional personally must “have” the prohibited interest, and the representation of an adverse interest cannot be imputed to the professional.

Section 101(14)(C)’s materially adverse interest standard is not met when a trustee uses estate counsel to defend a motion seeking leave to sue the trustee for acts in an official capacity.

United Tax Group, LLC · filed 2020-10-19(14)(C)

Therefore, using the estate’s attorney to defend a barton motion does not create adversity to the estate, much less constitute material adversity sufficient to justify the extreme remedy of removal.

Section 101(14)(C) requires a professional to personally have a materially adverse interest; representing a creditor alone does not impute that interest to the professional.

Reserves Management, L.C. · filed 2020-11-06(14)(C)

Accordingly, to violate the requirements of § 101(14)(C), the professional personally must “have” the prohibited interest, and the representation of an adverse interest cannot be imputed to the professional.

Section 101(14)’s disinterested person standard is satisfied when an accountant’s declaration of no conflict or adverse interest is unchallenged.

In Re Debtor Jeanette Aguilar · filed 2020-11-20(14)

In order for a Trustee to employ a professional, Section 327(a) only requires that the proposed professional: (1) does not hold or represent an interest adverse to the estate; and (2) is a disinterested persons pursuant to 11 U.S.C. § 101(14). ... Appellant failed to demonstrate – either in opposing the Trustee’s Application to Employ Accountants or in this appeal -- that the Statement of Disinterestedness was false or inaccurate or that Grobstein Teeple did not satisfy the requirements of Section 327(a).

Section 101(14)(C) excludes a person with an interest materially adverse to the estate or to a class of creditors or equity security holders from the definition of a disinterested person.

Black and White Stripes, LLC · filed 2020-12-04(14)(C)

Bankruptcy Code § 101(14)(C) defines a “disinterested person” as one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(C). This definition overlaps with the adverse interest requirement of section 327(a), creating a single test for courts to employ when examining conflicts of interest.

Section 101(14)(C) excludes a person with an interest materially adverse to the estate, creditors, or equity holders from the definition of a disinterested person.

Eastern Canal Film, LLC · filed 2020-12-04(14)(C)

Bankruptcy Code § 101(14)(C) defines a “disinterested person” as one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(C). This definition overlaps with the adverse interest requirement of section 327(a), creating a single test for courts to employ when examining conflicts of interest.

Section 101(14)(C) excludes a professional from the definition of a disinterested person when a financial arrangement with the debtor could color the professional’s independence.

Craig A Pope and Cathleen A. Pope · filed 2021-03-31(14)(C)

When the debtors commenced this case and sought to employ Krekeler Strother, the firm had recently drafted a series of transactional documents for one of the debtors and his wholly owned corporation that (1) directed ongoing income of the debtor to an account that the firm controlled and (2) required funds in that account to be applied to pay the firm’s fees before distribution to any of the debtor’s creditors or to the debtor himself. This easily falls within Crivello’s construction of §101(14)(C)’s catch-all clause.

Section 101(14)(C) can make a professional firm non-disinterested when its direct or indirect relationship creates an interest materially adverse to the estate.

NRCT, LLC · filed 2021-04-19(14)(C)

The Court concludes GR was not disinterested in the period while Mr. Ratner served as an officer and director of NCT pursuant to 11 U.S.C. § 101(14)(C) because it held an interest materially adverse to NRCT by reason of its direct and indirect relationship with NCT.

A disinterested person cannot have an interest materially adverse to the estate or its creditors because of a relationship with the debtor or for any other reason.

Ryan 1000, LLC · filed 2021-07-02(14)(C)

A “disinterested person” means a person that “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” ... Strouse’s representation of the Ryans in their Chapter 13 bankruptcy case poses a conflict with his representation of the debtors in these cases.

Section 101(14)(C) treats a trustee as having a materially adverse interest when the trustee represents a client adverse to an indirect equity owner of the debtor.

218 Jackson LLC · filed 2021-08-17(14)(C)

For the purposes of determining whether the Trustee is disinterested, the Court treats Mr. Vizer as the equivalent of an equity security holder because the need for impartiality is the same. ... The Trustee’s representation of ADI in the Via Airlines bankruptcy makes him materially adverse to an equity security holder – Mr. Vizer – meaning he is not a disinterested person.

Section 101(14)(C) requires a disinterested attorney to have no interest materially adverse to the estate, creditors, or equity holders; forming a corporation for a potential buyer does not itself create an adverse interest.

Neopharma, Inc. · filed 2021-10-29(14)(C)

To be disinterested, the attorney may not hold an interest materially adverse to the interest of the estate or of any class of creditors or equity holders, by reason of any direct or indirect relationship to, connection with, or interest in the debtor or for any other reason. 11 U.S.C. § 101(14)(C). ... The Court finds that this limited representation to form a corporation did not create an adverse interest.

Section 101(14) defines a disinterested person to exclude a debtor’s creditor or insider and anyone with a materially adverse interest to the estate or creditors.

Haney v. Schilling · filed 2022-02-10(14)

That Bankruptcy Code section in part defines a disinterested person as one who is not a creditor or insider of the debtor and does not have a materially adverse interest to the estate or creditors due to a direct or indirect relationship with the debtor, “or for any other reason.” 11 U.S.C. § 101(14). At the time the Application to Employ was filed Schilling’s statement was true.

Section 101(14) defines a disinterested person in part by the absence of creditor, insider, or materially adverse interests.

Judith E Haney · filed 2022-02-10(14)

That Bankruptcy Code section in part defines a disinterested person as one who is not a creditor or insider of the debtor and does not have a materially adverse interest to the estate or creditors due to a direct or indirect relationship with the debtor, “or for any other reason.” ... At the time the Application to Employ was filed Schilling’s statement was true.

Section 101(14)(C) defines a disinterested professional by reference to interests materially adverse to the estate or to a class of creditors or equity security holders, with a catchall for other reasons.

Boy Scouts of America v. · filed 2022-05-24(14)(C)

The latter are defined, in relevant part, as those who do “not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14)(C). Save the “any other reason” catchall, the focus dead ends at the debtor and especially its estate.

Section 101(14)’s definition of “disinterested person” does not govern appointments of future claimants’ representatives under § 524(g).

Imerys Talc America, Inc v. · filed 2022-06-30(14)

The absence of language invoking the disinterested person standard in § 524(g) thus counsels against adopting that standard for FCR appointments.

Section 101(14) requires a professional to have no interest materially adverse to the estate or a class of creditors or equity holders; another professional’s conflict alone does not make the professional interested.

Sugarloaf Centre, LLC · filed 2022-08-08(14)

To be disinterested, the professional (here MMM) must not have an interest materially adverse to the interest of the estate, or any class of creditors or equity holders. 11 U.S.C. § 101(14). ... MMM is distinct from the Trustee and GR, and the disqualification of the Trustee and GR provides no basis to assume MMM was not disinterested.

A professional’s disinterestedness depends on whether a presently identifiable interest is materially adverse; speculative future conflicts do not disqualify the professional.

SAS AB · filed 2022-10-17(14)(C)

The “disinterested” definition focuses on the question of whether there presently are materially adverse interests that would preclude a professional’s retention. I know of no theory under which the speculative loss of a potential future borrowing opportunity (the Debtors’ ability to approach SEB to participate in exit financing) ought to be considered as a presently disabling factor in SEB’s retention.

Section 101(14) excludes a professional with an interest materially adverse to the estate or a class of creditors from the definition of a disinterested person.

Sabbatical, Inc. · filed 2023-03-27(14)

The Bankruptcy Code defines “disinterested person,” in relevant part, as a person who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.” 11 U.S.C. § 101(14). ... Moreover, the Retention Applications incorrectly claimed that Offutt Nord was disinterested and failed to disclose both its prepetition and its ongoing, postpetition representation of Dennis Johnson, a shareholder/owner and creditor of the Debtors. In fact, Offutt Nord’s Invoices all named Dennis Johnson as the client, not any of the other Debtors. Had this materially adverse interest been disclosed, the Court could not and would not have approved Offutt Nord’s employment even in its narrow role as local bankruptcy counsel.

Section 101(14)(C) excludes a person with an interest materially adverse to the estate or a class of creditors or equity security holders from the definition of a disinterested person.

Estate of Arlene Townsend v. Berman · filed 2023-09-18(14)(C)

Second, counsel must be a “disinterested person,” which means that counsel may not, among other things, “have an interest mate- rially adverse to the interest of the estate or of any class of creditors or equity security holders.” Id. § 101(14)(C).

Section 101(14) permits a professional to be disinterested when its representation of a creditor in unrelated matters creates no materially adverse interest.

Invitae Corporation · filed 2024-05-16(14)

For reasons discussed below, the Court concludes that no actual conflict exists, and that K&E is “disinterested” as that term is defined in the Code, see 11 U.S.C. § 101(14).

Section 101(14)(C) can exclude a professional from being disinterested when an existing client relationship could color the professional’s independence and impartiality.

Jackson Hospital & Clinic, Inc. · filed 2025-05-15(14)(C)

This raises concerns over disinterestedness, because “for any other reason” under Section 101(14)(C) can serve to exclude a professional with an existing client relationship that could “even faintly color the independence and impartial attitude required by the Code and Bankruptcy Rules.”

Section 101(14)(C)’s definition of a disinterested person can exclude counsel whose prior representation of the debtor’s affiliates creates divided loyalties.

Vanderbilt Minerals, LLC · filed 2026-04-27(14)(C)

Section 101(14) defines “disinterested person” as an individual who “(C) does not have an interest materially adverse to the interest of the estate . . . by reason of any direct or indirect relationship to, connection with, or interest in, the debtor . . . .” 11 U.S.C. § 101(14)(C). ... Here, Jones Day is so intertwined with the Debtor’s affiliates that it creates a clear appearance of impropriety and divided loyalties.

A trustee's required disinterestedness means freedom from interests materially adverse to the estate or creditors; it does not prevent the trustee from objecting to a claimed exemption.

In Re Brooks · filed 1981-05-22(13)(E)

A trustee must be a person free from any interest materially adverse to the interest of the estate or of any class of creditors or equity security holders. See, 11 U.S.C. § 101(13)(E). Contrary to the suggestion of the debtor, the trustee, as representative of the estate [11 U.S.C. § 323(a)], has a definite interest in whether or not property comprising the estate is claimed or allowed as exempt property.

Section 101(13)(E) excludes a person from being disinterested when a connection with the debtor gives that person a materially adverse interest in the estate.

In Re Kuykendahl Place Associates, Ltd. · filed 1989-08-14(13)(E)

11 U.S.C. § 101(13)(E) defines “disinterested person” as one who does not have a materially adverse interest to the estate by reason of any direct or indirect relationship to or connection with the debtor. ... Due to Mr. Geller’s fiduciary responsibility to the limited partner and his personal guarantee of KPA’s indebtedness, the representation of KPA will be adverse to the representation of Mr. Geller in any claim he has against the estate. The firm’s duty of loyalty to KPA and/or to Mr. Geller results in a conflict of interest.

Section 101(13)(A) excludes insiders from the definition of a disinterested person.

In Re Middleton Arms, Limited Partnership · filed 1991-06-06(13)(A)

Section 101(13)(A) defines a disinterested person as a person that "is not a creditor, an equity security holder, or an insider." 11 U.S.C. Sec. 101(13)(A) (emphasis added). ... The debtors admit that Jacques Inc. is an insider under section 101(30)(F). Therefore, Jacques Inc. is an interested person for reasons other than prior employment, and does not qualify as a disinterested person for reasons other than its status as a former employee of the debtors.

Section 101(14) excludes prepetition creditors from the definition of a disinterested person.

In Re HSD Venture · filed 1995-02-22(14)

Regardless of how the issue is posed in this case, where the pre-petition creditor is a real estate agent or broker who has not been employed by the estate post-petition [and cannot be so employed under 11 U.S.C. § 327 because not “disinterested” within the meaning of 11 U.S.C. § 101(14) ], the answer is that such a creditor may not be allowed administrative expense priority.

Section 101(14) does not exclude an attorney from the definition of a disinterested person merely because the attorney represents a creditor, if the attorney is not a creditor and does not personally hold a materially adverse interest.

In Re AroChem Corp. · filed 1995-05-10(14)

First, it is observed that the disinterested person test under subsection (a) would not eliminate Caddell because Caddell is not within any of the defining parts of § 101(14), e.g., is not a creditor and does not “have an interest materially adverse to the interest of the estate or any class of creditors ...” 11 U.S.C. § 101(14)(A), (E), see also In re BH & P, Inc., 103 B.R. 556, 562 (Bankr.D.N.J.1989), aff'd, 119 B.R. 35 (D.N.J.1990), aff'd, 949 F.2d 1300 (3d Cir.1991) (holding that to “have” a materially adverse interest means to possess it in a personal, not representational, capacity).

Section 101(14)(E) excludes from the definition of a disinterested person counsel whose interest is materially adverse to the estate, creditors, or equity holders because of a connection with the debtor or for any other reason.

In Re eToys, Inc. · filed 2005-10-04(14)(E)

Disinterestedness is defined to mean that counsel “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(14)(E).

Section 101(14)(e) excludes a person with an interest materially adverse to the estate from the definition of a disinterested person; counsel’s active pursuit of a financial stake in the debtor creates such an interest.

I.G. Petroleum, L.L.C. v. Fenasci (In Re West Delta Oil Co.) · filed 2005-12-01(14)(e)

The Bankruptcy Code defines “disinterested person” as a person who “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, ... connection with, or interest in, the debtor.” ... Thus, both definitions ... have as their critical element the presence of an “adverse interest.” ... We also conclude that their interest in acquiring a financial stake in West Delta through Burrwood was adverse to West Delta.

Section 101(14)(E) excludes a professional from being disinterested when an economic interest could diminish the estate, create a dispute with it, or produce real bias against it.

Kagan v. Stubbe (In Re El San Juan Hotel Corp.) · filed 1999-05-21(14)(E)

The phrase “interest materially adverse to the interest of the estate” is not defined in the Code. Courts interpret it as “the possessing or asserting of any economic interest that would tend to lessen the value of the bankruptcy estate or that would create either an actual or potential dispute in which the estate is a rival claimant or possessing a predisposition under circumstances that render such a bias against the estate real.”

Section 101(14) excludes a person with an interest materially adverse to the estate or its creditors from the definition of a disinterested person.

In Re Ck Liquidation Corp. · filed 2009-07-02(14)

A "disinterested person" within the meaning of § 101(14) of the Bankruptcy Code is one who is "not a creditor, an equity shareholder, or an insider," nor presently, or within two years before bankruptcy, "a director, officer, or employee of the debtor," and does not have "an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders" for "any reason." ... The bankruptcy judge determined that there was no disqualifying conflict of interest, overruled Bowers' objection, and, in the exercise of his discretion, approved Mintz Levin's retention. The Appellant does not address the manner in which the bankruptcy judge either abused his discretion or committed an error of law in overruling Bowers' objection to Mintz Levin's retention. This Panel had been given no basis for and sees no independent reason to disturb the bankruptcy court's ruling.

Under § 101(14)(C), a professional's disinterestedness depends on whether the professional presently has a materially adverse interest.

In re Empire State Conglomerates, Inc. · filed 2016-02-24(14)(C)

For the same reason, Tarter does not “have” a personal interest materially adverse to the estate or anyone else within the meaning of Bankruptcy Code § 101(14)(C).

Section 101(14)’s definition of a disinterested person supplies the standard for assessing whether a SIPA trustee and counsel are disinterested.

In Re MF Global Inc. · filed 2011-12-27(14)

SIPA does not define “disinterested”; however, the legislative history of SIPA clearly indicates congressional intent for courts to apply the same meaning as the same term is given in the Bankruptcy Code.

Section 101’s definitions of debtor and person exclude a decedent’s estate from filing a bankruptcy petition, but a debtor who dies after filing need not qualify again when the case is reopened.

In re Roberts · filed 2017-05-01(13), (41)

The Court completely agrees that the Bankruptcy Code’s definitions of debt- or and person do not include a decedent’s estate, and therefore, a decedent’s estate may not file a bankruptcy petition. ... The situation before the Court, however, does not involve a decedent’s estate attempting to file a bankruptcy petition. Instead, the case before the Court involves the Trustee acting on behalf of the bankruptcy estate of a deceased debtor to reopen a bankruptcy case.

Section 101(12) defines “debtor” as a person or municipality concerning which a Title 11 case has been commenced, under any chapter.

Howell Petroleum Corp. v. Berkowitz, Lefkovits & Patrick (In Re Warrior Drilling & Engineering Co.) · filed 1981-09-24(12)

The term “debtor” is defined in 11 U.S.C. § 101(12) as “[p]erson or municipality concerning which a case under this title has been commenced.” This would apply to the attorney of any debtor in connection with a case filed under the provisions of any Chapter of Title 11. Thus, an attorney for the “debtor” as referred to in § 329, may or may not become the attorney for the “debtor in possession” (trustee) under § 327.

Section 101 defines a debtor as a person or municipality with a bankruptcy case commenced concerning it, excluding parties who have not filed for bankruptcy relief.

Caspescha v. Plum · filed 1982-11-23

Said definition leads us to conclude that in the Bankruptcy Code “debtor” is generally intended to include only debtors in bankruptcy, not non-bankrupt parties who have not filed for relief under that title.

Section 101(12) defines a debtor as the person for whom a bankruptcy case has been commenced.

D. Nagin Mfg. Co. v. Pollina (In Re Pollina) · filed 1983-05-31(12)

The “debtor”, Philip Joseph Pollina, is the “person ... concerning which a case under this title [11 U.S.C. §§ 1, et seq.] has been commenced”, see 11 U.S.C. § 101(12).

Section 101 defines a debtor as a person or municipality and a person as an individual, partnership, or corporation, excluding a decedent’s estate from bankruptcy relief.

In Re James · filed 1983-06-23(12), (30)

The Bankruptcy Code defines “debtor” as a person or municipality. 11 U.S.C. § 101(12). A “person” is further defined as an individual, partnership, or corporation. 11 U.S.C. § 101(30). The executor or administrator of a decedent’s estate cannot file for relief under the Bankruptcy Code. A decedent cannot file for bankruptcy relief.

Section 101 treats a debtor as one entity even when the debtor earns wages and operates a business.

Dayton Area Savings & Loan Community Redevelopment Corp. v. Foreman (In re Foreman) · filed 1983-08-10(12), (14)

The Debtor is as such also an entity and is not subject to fragmentation into a business debtor and a wage earner debtor. 11 U.S.C. § 101(12) and (14).

Section 101(12)’s definition of debtor includes a person acting as a trustee of a nonbankruptcy trust.

Colin v. Manufacturers Hanover Trust Co. (In Re Colin) · filed 1983-12-19(12)

Moreover, the Code’s definition of a “debtor” as a “person ... concerning which a case under this title has been commenced” embraces the concept of a person who among other things, functions in the capacity as a non-bankruptcy trustee.

A guarantor does not become a debtor under § 101 solely by guaranteeing the debt of someone who filed for bankruptcy.

BA Commercial Corp. v. Hynutek, Inc. · filed 1986-01-08(12), (30)

The automatic stay in bankruptcy applies to “the debtor.” 11 U.S.C. § 362. For present purposes, this means the individual and corporation that have filed for bankruptcy. 11 U.S.C. § 101(12) and (30). It does not include a guarantor of the debt- or.

Section 101(12) defines a debtor as a person or municipality with a bankruptcy case; the debtor’s real property is not itself a debtor.

Blair v. Alabama (In Re Blair) · filed 1986-07-09(12)

Section 362(b)(1) is by its terms applicable only with respect to criminal proceedings “against the debtor.” “Debtor” is defined by 11 U.S.C. § 101(12) to mean “person or municipality concerning which a case under [title 11] has been commenced.” The definition of “person” cannot be construed to include the debtor’s real property.

Section 101(12) defines a debtor as a person concerning whom a bankruptcy case has commenced; a reorganized corporation remains that debtor when it is the same corporation.

Tennessee Wheel & Rubber Co. v. Captron Corporate Air Fleet (In Re Tennessee Wheel & Rubber Co.) · filed 1986-08-29(12)

The Code defines “debtor” as a person concerning which a bankruptcy case has been commenced. 11 U.S.C. § 101(12) (1982 ed.). ... The “debtor” and “debtor-in-possession” in this case was a corporation, Tennessee Wheel and Rubber Company. The “reorganized debtor” is the same corporation indistinguishable from the “debtor” for § 1123 purposes.

Section 101(12) defines a debtor as a person or municipality with a case commenced under Title 11; a parent corporation without such a case is not a debtor.

Matter of Walway Co. · filed 1987-02-13(12)

A “debtor” is defined as a person or municipality concerning which a case under Title 11 has been commenced. 11 U.S.C. § 101(12). ... If a corporation does not have a case commenced against it, then it is not a debtor and the court has no jurisdiction.

Section 101(12) defines a debtor as a person concerning which a case under Title 11 has been commenced.

In Re Hargis · filed 1987-05-22(12)

The current Bankruptcy Code also precludes any notion that there is a distinction between a "debtor” and a "debtor in possession". A "debt- or” is a person concerning which a case under Title 11 has been commenced. 11 U.S.C. sec. 101(12).

Section 101’s definition of debtor does not bar a political action committee from filing under Chapter 11.

In Re Fund for a Conservative Majority · filed 1989-05-08(12)

We find that under the applicable provisions of the Code which set out the eligibility requirements for filing, 11 U.S.C. §§ 109 and 101, Fund for a Conservative Majority is not prohibited from filing a petition for relief under Chapter ll.

Section 101(12) uses “debtor” for people in both liquidation and rehabilitation cases under the 1978 Code.

Matter of Urrutia · filed 1990-07-16(12)

Under the Reform Act of 1978, however, the general term “debtor” has superseded the term "bankrupt” and is used for both kinds of cases.

Section 101(12) defines a debtor as a person or municipality for whom a bankruptcy case has been commenced.

Transamerica Automotive Finance Corp. v. Artibee (In re PAL Nissan, Inc.) · filed 1991-04-29(12)

The Bankruptcy Code defines a “debtor” to be a “person or municipality concerning which a case under this title has been commenced”. 11 U.S.C. § 101(12). None of the Defendants have yet filed a bankruptcy petition. They are not “debtors” before any bankruptcy court at this time.

Section 101(13) defines a debtor as the person whose bankruptcy case has commenced.

Eliawira Ndosi and Barbara Ndosi v. State of Minnesota · filed 1991-12-17(13)

The “debtor” is the “person ... concerning which a case under this title has been commenced.” 11 U.S.C. § 101(13). In this case, the debtors are Eliawira and Barbara Ndosi, not NEI.

Section 101(12) defines a debtor as a person concerning whom a bankruptcy case has been commenced; a spouse who has not filed a petition is not a debtor.

Goldsby v. United States (In Re Goldsby) · filed 1992-01-13(12)

A debtor is a “person ... concerning which a case under this title has been commenced.” 11 U.S.C. § 101(12). In the instant case, only Mr. Goldsby chose to file a bankruptcy petition. Mrs. Goldsby has not filed a petition, and she is therefore not entitled to the protection afforded debtors under the Bankruptcy Code.

Section 101(13) defines who is a debtor in a bankruptcy case; a spouse does not become a debtor merely by filing joint tax returns with the person who filed the bankruptcy petition.

Kroh v. Commissioner · filed 1992-04-02(13)

A person becomes a "debtor" under the Bankruptcy Code only by filing a petition in bankruptcy. ... In the instant case, only Mr. Kroh chose to file a bankruptcy petition. Petitioner chose not to file a petition and, therefore, was not a "debtor" in her husband's title 11 bankruptcy case.

Section 101’s definitions of “debtor” and “person” exclude a bankruptcy estate from “successor to the debtor” in § 505(b).

Matter of West Texas Marketing Corp. · filed 1995-06-01(13), (41)

The Bankruptcy Code defines a debtor as a "person or municipality concerning which a case under this title has been commenced", 11 U.S.C. § 101(13); and a "person" includes an "individual, partnership, and corporation". 11 U.S.C. § 101(41). Thus, a "debtor" must be an individual, partnership or corporation, and it follows that any "successor to the debtor" must also be an individual, partnership or corporation.

Section 101(13) treats the debtor in each bankruptcy case as a distinct legal entity.

In Re Jamesway Corp. · filed 1996-11-21(13)

The term “debtor” means the legal entity created upon the commencement of a case under title 11.

Section 101(13) defines a debtor as the person concerning which a bankruptcy case has been commenced; a lease entered into by a Chapter 11 debtor in possession is not a lease of the debtor in the converted Chapter 7 case.

In Re Merry-Go-Round Enterprises, Inc. · filed 1997-05-16(13)

The debtor means a person “concerning which a case under this title [the Bankruptcy Code] has been commenced.” 11 U.S.C. § 101(13). A debtor in possession, on the other hand, is a person that only comes into existence when a Chapter 11 case is filed. While the debtor in possession is defined to mean the debtor, the definition applies only “[i]n this chapter [11].” Id. at § 1101(1). This case is now in Chapter 7, and in Chapter 7 the subject lease is not a lease of the debtor, but rather it is a lease of the debtor in possession, before conversion.

Section 101(13) defines a debtor to include a person who is the subject of either a voluntary or an involuntary bankruptcy filing.

Corto v. National Scenery Studios, Inc. · filed 1997-09-22(13)

"Debtor” is defined under 11 U.S.C. § 101(13) to mean anyone who is the subject of a bankruptcy filing under this title. The definition does not distinguish between a voluntary and an involuntary debtor.

Section 101(13) does not treat a nonfiling spouse as a debtor merely because the spouse’s community property enters the bankruptcy estate.

Martin v. United States · filed 1998-12-01(13)

The district court held that § 1398(f)(2) was inapplicable to the facts of this case because (1) Susan was a nonfiling spouse ... rather than a “debtor”18; (2) there was no “transfer from the estate”; and (3) Susan did not receive any “asset” of the estate. We agree.

Section 101(13) defines a debtor as the person whose bankruptcy case has commenced; the debtor is distinct from the bankruptcy estate.

In Re Boston Regional Medical Center · filed 2000-12-04(13)

“Debtor” and “estate” have different meaning in the Bankruptcy Code and are not interchangeable. See 11 U.S.C. § 101(13) (defining debtor as the person concerning which a case under the Bankruptcy Code has been commenced) and 11 U.S.C. § 541 (specifying the property of which the estate is comprised). Though the estate may be — and, in this instance, was at all relevant times — in the possession of the debtor, it is a distinct entity from the debtor.

Section 101 defines a debtor as the person or operation for which a bankruptcy proceeding has been commenced; a subsidiary does not become a debtor merely because its parent is in receivership.

City of Danbury v. Arc Icesports, No. X01 Cv00-0161417s (Apr. 24, 2001) · filed 2001-04-24(13), (41)

Under U.S. bankruptcy law, a "debtor" in a bankruptcy proceeding is the person or operation concerning which proceeding under the Bankruptcy Act has been commenced. 11 U.S.C. § 101 (13), (41). ... This court has been presented with no evidence that ARC Icesports, as opposed to the owner of its shares, has filed in bankruptcy, nor has it been presented with any evidence that ARC IceSports is an alter ego or mere instrumentality of the Canadian owner of its shares.

Section 101(13) defines a debtor as a person concerning whom a bankruptcy case has been commenced; a spouse who has not commenced a case is not a debtor.

In Re Nahat · filed 2002-05-09(13)

“Debtor” is defined in 11 U.S.C. § 101(13) as a “person ... concerning which a case under this title has been commenced.” Mrs. Nahat has not commenced a case under Title 11 and therefore is not a debtor.

Section 101 defines a debtor as the person or municipality in a bankruptcy case, and its definition of person includes a corporation.

Burtch v. Ganz (In Re Mushroom Transportation Co.) · filed 2002-09-04(13), (41)

The debtor's duties and obligations, including the duty to safeguard assets, flow not from the rules, but from the Bankruptcy Code, which defines "debtor” as "person or municipality concerning which a case under this title has commenced.” 11 U.S.C. § 101(13). Under this definition, person includes a corporation.

Section 101(13) treats a Chapter 11 debtor as a person who may be included in a plan’s merger or consolidation.

In Re Stone & Webster, Inc. · filed 2002-11-14(13)

In using the phrase “one or more persons”, § 1123(a)(5)(C) obviously means that pursuant to § 101(13) a “person” can be a “debtor.”

Section 101 defines a debtor as a person and includes corporations within the definition of person.

United States v. Atiyeh · filed 2004-08-04(13), (41)

The term “debtor,” as defined by the Bankruptcy Code means a “person,” which in turn is defined to include an “individual, partnership, and corporation.” 11 U.S.C. §§ 101(13), 101(41)(emphasis added). Thus, imputing into § 3284 the definition of debtor recognized by Congress in the Bankruptcy Code does not advance defendant’s argument that § 3284 draws a line between corporate debtors and individual debtors.

Section 101(13) treats a person as a debtor when that person files a bankruptcy petition.

Steakley v. Steakley · filed 2006-02-21(13)

By filing the petition, husband became a “debtor” under federal bankruptcy law.

Section 101’s definition of “debtor” does not prevent a Chapter 13 debtor who dies after filing from receiving a discharge.

In Re Perkins · filed 2007-11-21(13)

In essence, the Trustee is asking the Court to construe these definitions of “debtor” to preclude a deceased debtor in a Chapter 13 case from receiving a discharge. This Court rejects the Trustee’s argument as it is contrary to the historical treatment given a deceased debtor in Bankruptcy and is incomplete as it stops short of a complete analysis of § 1328(a) and § 109(e).

Section 101(13) defines a debtor to include a person whose bankruptcy case was commenced even if the case was later dismissed.

In Re Raggie · filed 2008-07-01(13)

This case was dismissed, not closed pursuant to § 350, and therefore, the right to amend schedules as a matter of course has not expired. Pursuant to § 101(13), “[t]he term ‘debtor’ means person or municipality concerning which a case under this title has been commenced.” 11 U.S.C. § 101(13). Therefore, Bankruptcy Rule 1009’s reference to a “debtor” includes Mr. Raggie.

Section 101(13) defines a debtor as a person or municipality concerning which a Bankruptcy Code case has been commenced.

Green Tree Servicing, LLC v. Duncan · filed 2008-08-18(13)

The automatic stay protects a “debtor,” and the definition of a “debtor” is “a person or municipality concerning which a case under [the Bankruptcy Code] has been commenced.” 11 U.S.C. § 101(13). Green Tree Servicing did not file the bankruptcy petition, and the bankruptcy proceeding did not concern Green Tree. Instead Green Tree purchased Conseco’s assets in the bankruptcy proceeding. Conseco, not Green Tree, is the debtor.

Section 101(13) defines a debtor as the person concerning whom a bankruptcy case has been commenced.

In RE McADAM · filed 2009-01-16(13)

"The debtor" for purposes of section 507(a)(8)(D) is the person concerning which a case under the Bankruptcy Code has been commenced. § 101(13); see Ndosi v. State of Minnesota, 950 F.2d 1376, 1378 (8th Cir.1991). ... "The debtor" is the Plaintiff and the Past-Due Contributions arise from wages earned from IPBMC's employees, not the Plaintiff's employees.

Section 101(13) defines a debtor as the person or municipality concerning which a bankruptcy case has been commenced; a Chapter 11 debtor in possession remains that same person.

Biltmore Associates v. Twin Cities · filed 2009-07-10(13)

Thus the debtor in pos- session is the debtor, and the debtor is the person, Visitalk, that filed for bankruptcy.

Section 101(51D)(A) measures small business debtor status by noncontingent, liquidated secured and unsecured debt as of the petition date; the applicable cap in this case was $2,190,000.

In Re Roots Rents, Inc. · filed 2009-10-29(51D)(A)

As material to the present matter, the definition of a small business debtor requires not more than $2,190,000 in aggregate, noncontingent, liquidated, secured and unsecured debt as of the date of the petition.