Thanks for explaining.
So, what is the difference to creditors between the liquidation trust they keep talking about (staying in chapter 11) vs. changing to chapter 7 and liquidating? IOW, what value does this liquidation trust being advocated add to the creditors, when it sounds like all hard assets are gone?
If this were chapter 7 (liquidation), then would the $222K be split across all creditors including attorneys (attorneys don't get paid first)?
No, the administrative claims would remain and a new set of lawyers would take over appointed by the US government. Regardless of what path is taken the judge can decide to only allow partial fees if he thinks the lawyers didn't get a great outcome for the creditors.