Automated Recovery Systems of New Mexico, Inc.

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW MEXICO In re: AUTOMATED RECOVERY Case No. 22-10225-t11 SYSTEMS OF NEW MEXICO, INC., Debtor. OPINION Before the Court is Debtor’s motion to authorize the payment of attorney fees to its special counsel for work done prepetition. Debtor argues it is holding the fees in trust, so the money is not property of the estate. A creditor objected, disputing that the funds are held in trust and asserting that special counsel is an unsecured creditor and not entitled to payment of its prepetition claim. After an evidentiary hearing, the Court finds and…