State Law Permitting, Classic Retainers Are Not Property of the Estate
June 10, 2015
Publication| Bankruptcy & Corporate Restructuring
A classic retainer becomes property of the law firm immediately upon payment to the extent permitted by state law. If, after that payment is made, the client commences a bankruptcy case, the payment, to the extent it is properly characterized as a classic retainer, remains property of the law firm and is not property of the client’s estate.