The parties involved in the transaction at issue ha previously agreed to a settlement with a judgment for $200,000 and also a confession of judgment for $446,000. Mr. Pfeifer satisfied the terms of the $200,000 judgement, through proceeds from the sale of property, the but after paying slightly more than $10,000 further, cease payments and filed bankruptcy.
Gabiddon Builder proposed Subchapter V Plan in which it would sell the lot it owns and to use the net proceeds to pay creditors $10,000 each with the remainder of their claims to be paid over the balance of the Plan. Gabiddon Builders would then use the balance of the net proceeds to purchase a second lot and to build a 4,300 square foot house on that lot, from which it could then sell and use those proceeds to continue to fund the Plan.
The Debtor filed an application to employ special counsel on March 4, 2020, which served as the effective date of employment, but special counsel had already performed the bulk of its compensable services prior to that date.
