Bankruptcy Lawyers Los Angeles - Attorneys Fees Chapter 13
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Bankruptcy Lawyers Los Angeles - Attorneys Fees Chapter 13

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ATTORNEY FEES

(1) Rights and Responsibilities Agreement. The court has adopted Official Form F 3015-1.7 entitled “Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys” (RARA). The use of the RARA in any case is optional. However, if the debtor’s attorney elects to proceed under the RARA, the RARA form is mandatory. If the RARA form is signed by the attorney and the debtor, filed, and served on the responsible chapter 13 trustee in any case, the fees outlined therein may be approved without further detailed fee application or hearing, subject to the terms of both the RARA and the Guidelines for Allowance of Attorneys’ Fees in Chapter 13 Cases (Guidelines) attached hereto as Appendix IV. The maximum fee allowable under the RARA and the Guidelines is:

$3,000 in a case in which the debtor is self-employed; or

$2,500 in all other cases.

(2) Duties of Debtors and their Attorneys if the RARA is Signed, Filed, and Served. The RARA sets forth the duties and obligations that must be performed by the debtors and their counsel, both before and after the case is filed and before and after confirmation of a plan, if the parties elect to use the RARA. The RARA also specifies the fees that the attorney will charge and the procedures for seeking and objecting to payment of fees. An attorney who elects to use the RARA may not charge more than the maximum fees outlined in paragraph (1) above for performing services described in bold face type in the RARA. If the attorney performs tasks on behalf of the debtor not set forth in bold face, the attorney may apply to the court for additional fees and costs, but such applications will be reviewed by both the chapter 13 trustee and the court.

Unless sought by noticed motion pursuant to Local Bankruptcy Rule 9013-1, applications for additional fees and costs shall be submitted to the chapter 13 trustee for comment before being filed with the court, and shall be supported by evidence of the nature, necessity, and reasonableness of the additional services rendered and expenses incurred. When additional fees are sought, the court may, in its discretion, require additional supporting information or require a hearing, even though no opposition is filed. In such application, the attorney shall disclose to the court any fees paid or costs reimbursed by the debtor and the source of those payments.

If the parties elect to utilize the RARA, the lists of duties and obligations set forth in the RARA may not be modified by the parties. Other portions of the RARA may be modified in the following respects only: (1) the attorneys’ fees provided for in the RARA may be reduced; (2) the agreement may be supplemented to include any additional agreements that may exist between the parties concerning the fees and expenses that the attorney will charge for performing services required by the RARA that are not in bold face type.

(3)
Debtor’s Signature. The debtor’s signature on the RARA certifies that the debtor has read, understands and agrees to the best of his or her ability to carry out the terms of the RARA, and has received a signed copy of the RARA.
(4)
Attorney’s Signature. The attorney’s signature on the RARA certifies that before the case was filed the attorney personally met with, counseled, and explained to the debtor all matters set forth in the RARA and verified the number and status of any prior bankruptcy case(s) filed by the debtor or any related entity, as set forth in Local Bankruptcy Rule 1015-2. The RARA does not constitute the written fee agreement contemplated by the California Business and Professions Code.
(5)
An Attorney May Elect to be Paid Other than Pursuant to the RARA and the Guidelines. At any time, whether or not a RARA is on file in any case, the debtor’s attorney may elect to seek an allowance of fees and costs other than pursuant to the RARA and the Guidelines. In that event, the attorney shall file and serve an application for fees in accordance with 11 U.S.C. §§ 330 and 331, Rules 2016 and 2002 of the F.R.B.P. and Local Bankruptcy Rules 2016-1 and 3015-1, as well as the “Guide to Applications for Professional Compensation” issued by the United States Trustee for the Central District of California.
(6)
Court Review of any Attorney’s Fee. On its own motion or the motion of any party in interest, the court may order a hearing to review any attorney’s fee agreement or payment, in accordance with 11 U.S.C. § 329 and Rule 2017 of the F.R.B.P.