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Guidelines for Payment of Attorney's Fees in Chapter 13 CasesUnited States Bankruptcy Court
The following guidelines determine presumptively reasonable fees for Chapter 13 cases, describe simplified procedures for seeking such fees, and determine the manner in which the Chapter 13 Trustee will disburse approved fees. This court has issued guidelines regarding the "Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys." Parts I and II of those guidelines describe certain legal services that an attorney agrees to perform for the attorney's clients (the Basic Services). Through these fee guidelines, the court determines the fees that an attorney may recover for performing the Basic Services (the Guideline Fees) and sets forth a simplified procedure for applying for Guideline Fees. 1. Counsel may receive an order approving fees and costs up to the amounts set forth in Paragraph 2 without filing a detailed application if:
b. Counsel has accepted no more than $1,250 as a retainer in a consumer case or $1500 as a retainer in a business case; provided, however, up to an additional $500 may be accepted if counsel is required to and does file a motion to extend the automatic stay under 11 U.S.C §362(c)(3); 2. The maximum fee that can be approved through the procedure described in Paragraph 1 is:
3. Additional flat fees for services rendered will be automatically approved upon application by counsel, without requiring the submission of time records and without a hearing, as follows:
4. The Guideline Fees set forth above in Paragraphs A.2 and 3 are viewed by the court as the maximum reasonable fees for Basic Services, and are intended to be the only allowed compensation for such services absent unexpected and unusual circumstances. 5. The simplified procedures for awarding fees in accordance with Paragraphs A.1, 2 and 3 will not be available for Chapter 13 debtor's counsel if: 6. If debtor's counsel has accepted a retainer larger than authorized in Paragraph A.1.b. and has not filed an application for court approval of the larger retainer within fifteen (15) days of the filing of the original petition, counsel shall immediately refund the entire retainer to the Chapter 13 Trustee, and shall not be paid any additional fees until the entire retainer has been refunded. Late-filed applications for approval of larger-than-guideline retainers will rarely be approved. Counsel whose timely filed application is denied shall refund only the excess amount, and shall not be paid any additional fees until such excess has been refunded to the Chapter 13 Trustee. 7. If counsel seeks fees for Basic Services in excess of the Guideline Fees, seeks fees for services other than Basic Services, chooses not to utilize these fee procedures, or if the simplified procedures are not available because of either of the conditions described in Paragraph 5, then: 8. Counsel may request reimbursement of out-of-pocket court filing fees advanced, even if counsel elects to receive the automatic fees available in accordance with Paragraph 2. 9. On its own motion or the motion of any party in interest, the court may order a hearing to review any fee, whether paid or unpaid.
B. Distribution of Funds in Chapter 13 Cases. Payments shall be disbursed as set forth in the Model Plan effective October 17, 2005. |
