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Attorney paid in bankruptcy despite AG claim

Attorney paid in bankruptcy despite AG claim

Attorney paid in bankruptcy despite AG claim

When a bankruptcy trustee wound up the estate of a religious organization in Massachusetts, an attorney for the organization sought to be paid for work both before and after the appointment of the bankruptcy trustee and despite a claim by the state Attorney General to impound funds while she pursued the organization’s principals for breach of fiduciary duty. A bankruptcy court has authorized the payment. International Gospel Party Boosting Jesus Groups had filed for bankruptcy protection in 2010. Its sole asset was real estate, which was ultimately sold to provide sufficient funds to pay all creditors and leave a surplus of $200,000. The attorney for the organization filed a claim for...

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