BANKRUPTCY RULE 2016-1

COMPENSATION FOR LEGAL FEES AND EXPENSES

SOUGHT BY DEBTOR'S ATTORNEY IN CHAPTER 13 CASES

 

(A)          LEGAL FEES - SIMPLIFIED APPLICATION

An attorney who represents a debtor, whether joint or individual, in a Chapter 13 case is excused from the compensation application requirements of Fed. R. Bankr. P. 2016(a) and the notice requirement of Fed. R. Bankr. P. 2002(a)(6) if the attorney's claim for compensation does not exceed a presumptively reasonable fee of $4,000. This fee will be presumed to compensate a debtor's attorney for a level of service to the debtor that, at a minimum, must include the services listed in paragraph (1).

(1)             The presumptively reasonable fee must include, at a minimum, the following services:

(a)             Prepetition

1.                 Meeting with the debtor to discuss and analyze the debtor's situation, goals and objectives and to recommend a solution.

2.                 Counseling the debtor regarding the advisability of filing bankruptcy (as well as non-bankruptcy options) and answering the debtor's questions.

3.                 Explaining the terms of representation, filing fees and plan payment requirements.

4.                 Performing due diligence tasks such as obtaining the debtor's credit report, checking the national PACER database to confirm whether the debtor has previously filed a bankruptcy case and verifying ownership of vehicles, real property and other assets.

5.                 Consulting and communicating with the debtor to gather information and to inform the debtor of his/her responsibilities.

6.                 Timely preparing, revising and finalizing the debtor's petition, plan, statements, schedules and other forms and documents necessary for prosecuting the debtor's bankruptcy case.

7.                 Advising the debtor of the requirements to obtain prepetition credit counseling, to maintain appropriate insurance and to file all income and other tax returns.  

8.                 Advising the debtor about the steps necessary to obtain a discharge, including filing a statement regarding domestic support obligations and completing a financial management course.

9.                 Reviewing the completed petition, plan, statements and schedules with the debtor and ensuring the debtor signs them.

(b)             Postpetition and Preconfirmation

1.                 Advising the debtor of the requirement to attend the meeting of creditors, ensuring the debtor is prepared for the meeting and notifying the debtor of the date, time and place of the meeting. In the case of a joint filing, notifying both spouses that they must appear at the meeting.

2.                 Providing legal representation to the debtor at the meeting of creditors and attending the confirmation hearing, if necessary.

3.                 Ensuring bank statements and income and tax records are timely submitted to the trustee.

4.                 Initiating and responding to correspondence and calls to and from the trustee, the United States Trustee, creditors and other interested parties as necessary for the timely administration of the debtor's case.

5.                 Timely responding to objections to plan confirmation and, when necessary, preparing, filing and serving an amended plan.

6.                 Corresponding with the debtor and creditors to ensure compliance with section 362 (automatic stay) as it pertains to wage garnishments, levied accounts, foreclosures or any other matter.

7.                 Monitoring all incoming Case Management/Electronic Case Files (CM/ECF) case information.

8.                 Timely preparing, filing and serving any necessary amended statements and schedules and any change of address in accordance with information provided by the debtor.

(c)              Postconfirmation

1.                 Evaluating proofs of claim, determining the necessity of objecting to filed claims and advising the debtor accordingly.

2.                 Responding to the debtor's questions throughout the term of the plan or until either the case is dismissed or the court has authorized the debtor's attorney to withdraw from representation.

3.                 Assisting the debtor with the steps necessary to obtain a discharge, including filing a statement regarding domestic support obligations and completing a financial management course.

4.                 Monitoring all incoming CM/ECF case information.

(2)             The presumptively reasonable fee does not include the following services:

(a)             Representing the debtor in adversary matters, Rule 2004 examinations or postconfirmation hearings.

(b)             Preparing the following motions:

1.                 to buy or sell real or personal property and/or to incur debt;

2.                 objecting to improper or invalid proofs of claim;

3.                 to avoid a lien;

4.                 to modify a confirmed Chapter 13 plan;

5.                 to approve settlements;

6.                 to deem a mortgage current;

7.                 to approve sales or refinancing;

8.                 to substitute collateral;

9.                 for hardship discharge; and

10.            for early termination of the plan.

(c)              Responding to motions:

1.                 for relief from stay or for a valuation of property; and

2.                 to dismiss (postconfirmation).

(B)           LEGAL FEES - SIMPLIFIED APPLICATION - POSTCONFIRMATION SERVICES NOT INCLUDED IN THE PRESUMPTIVELY REASONABLE FEE

In a Chapter 13 case, an attorney who represents a debtor after confirmation in the following matters may request an order awarding compensation by simplified application, and the court may issue the requested order without a hearing, if the sum of the requested compensation does not exceed $1,000 per application.

1.                 resolving motion(s) for relief from stay;

2.                 resolving motion(s) to dismiss;

3.                 filing motion(s) for sale of real estate;

4.                 filing motion(s) objecting to claims;

5.                 assisting the debtor in preparing and submitting required disclosures under 11 U.S.C. Section 521(f)(4);

6.                 assisting the debtor in responding to requests for information made in connection with an audit conducted pursuant to 28 U.S.C. Section 586(f); and

7.                 filing motion(s) for hardship discharge.

An attorney who represents a debtor after confirmation of a plan in serving and filing a modified plan may likewise request an order awarding compensation and/or reimbursement of expenses by simplified application if the amount of the requested compensation does not exceed $1,500 per application.  The simplified application need not comply with Fed. R. Bankr. P. 2016 and must substantially conform to Local Form - Simplified Application for Compensation. An attorney who complies with this subsection need not provide notice of his/her Simplified Application. The court may enter an order granting the simplified application without a hearing.

(C)           OBJECTION TO FEES

The Simplified Application process described in subsections (A) and (B) above does not limit the trustee, United States Trustee, creditors or any interested party from questioning the reasonableness of an attorney's fees requested on a Simplified Application.  This rule also does not limit the court's discretion to review the amount of fees paid to or agreed to be paid to a debtor's attorney or to enter appropriate orders allowing, disallowing or reducing attorney's fees or expenses.  If an objection is raised, the attorney may be required to submit an application for compensation and an itemization of fees and costs that satisfy the requirements of section 330 and Fed. R. Bankr. P. 2016.

(D)           LEGAL FEES - STANDARD APPLICATION REQUIRED

Employing the simplified fee application process described in subsections (A) and (B) is optional.  An attorney who declines to accept the presumptively reasonable fee for the minimum services listed may submit an application that conforms to the requirements in section 330 and Fed. R. Bankr. P. 2016(a) and 2002(a)(6).

An attorney who elects to accept the presumptively reasonable fee for the tasks listed in subsections (A) or (B) may apply for additional compensation for tasks that exceed the scope of those subsections.  This application must conform to the requirements in section 330 and Fed. R. Bankr. P. 2016(a) and 2002(a)(6).  The application for additional compensation for tasks or expenses exceeding the scope need not include an itemization of tasks or fees that fall within the presumptively reasonable fee under subsections (A) or (B), unless specifically requested by the court.

Debtor's attorney may file a standard application before or after confirmation of a Chapter 13 plan.

(E)            LEGAL COSTS AND EXPENSES

An attorney who represents a debtor in a Chapter 13 case may apply for actual costs and expenses incurred, including photocopies, PACER fees, postage, long distance telephone charges, due diligence fees, credit counseling costs and  mileage on the simplified application form or the standard application form.