Roderick Reed filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. After filing, it became necessary for him to defend a complaint brought by a creditor who sought a ruling that the debt owed the creditor was not dischargea-ble in bankruptcy. Reed’s attorneys filed a fee application pursuant to 11 U.S.C. § 330 (1988) for services rendered in defending that action. The Bankruptcy Court,
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There is a split of authority in the courts regarding the requirement that services rendered by counsel for the debtor benefit the estate before fees can be recovered. Counsel for Reed argue that the minority rule, which allows compensation regardless of whether the services benefit the estate rather than only the debtor, is the better rule.
See, e.g., In re Delhi,
We find no merit in the argument of Reed’s attorneys that we should draw a distinction between fee applications in Chapter 7 cases and those in Chapter 11 cases. Section 330 applies to all bankruptcy cases; it makes no distinction between Chapter 7 and Chapter 11 cases. “In general, on an application for compensation from the estate, there is no difference between the [fee payment] standards to be applied in reorganization and liquidation cases.”
In re Moore,
We have reviewed the thorough and well-reasoned orders of the courts below and find no error of law in their conclusion that an attorney fee application in bankruptcy will be denied to the extent the services rendered were for the benefit of the debtor and did not benefit the estate. We therefore affirm the order of the District Court. See 8th Cir.R. 14.