In Re Fazio

OPINION

EMIL F. GOLDHABER, Chief Judge:

Confronted by a fee application submitted by the debtor’s counsel, we are faced with the question of whether we may award counsel fees when the assets of the estate are fully encumbered. On the basis of the reasons outlined below we conclude that no award of fees may be made.

We summarize the few pertinent facts of this case as follows: 1 The debtor filed a petition for relief under chapter 11 of the Bankruptcy Code (“the Code”). All of the debtor’s assets were then (and are now) fully encumbered. Two mortgagees are the Federal Land Bank of Baltimore and…