Sen. Grassley Requests GAO Examine Attorneys’ Fees in Bankruptcy Cases, Venue

Sen. Charles Grassley (R-Iowa) Sept. 9 sent a letter to the Government Accountability Office requesting that the agency “conduct a review of professional fees in corporate bankruptcy cases.”

Grassley wrote the letter as the ranking member of the Senate Judiciary Committee, which has oversight and legislative jurisdiction over Title 11 of the U.S. Code.

‘Cash Cows’?

According to Grassley, it is “imperative, in a court of equity like the bankruptcy court, that Congress monitor whether large corporate Chapter 11 cases are ‘cash cows’ for certain professionals at the expense of creditors and debtors alike, thereby subverting Congressional intent.”

In his ...