Individual chapter 11 debtor-in-possession who had recently converted her case from chapter 7, filed application to employ an attorney who had also represented her during her chapter 7 case. A creditor objected, arguing that the attorney failed to meet the requirements of 11 U.S.C. § 327(a) because, during his pre-conversion representation of the Debtor, he effectively represented interests “adverse to the estate.” The Court held that the attorney’s pre-conversion representation of the Debtor did not create a conflict or disqualifying bias under § 327(a) because the Debtor’s duties to creditors were distinctly different during the chapter 7 case than in the chapter 11 case. In addition, 11 U.S.C. § 1107(b) instructs that an attorney’s prior representation of a debtor, standing alone, should not disqualify that professional from representing the debtor-in-possession. To hold otherwise would require every debtor who converts from chapter 7 to chapter 11 to obtain brand new counsel upon conversion.
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