CH13 transferred from N. Carolina
Posted: Sun Feb 10, 2013 5:23 pm
Has anyone substituted in on a transfer chapter 13? Our local rules dont
play well with plans confirmed in other districts, here North Carolina to
CDC. The NC plan is unrecognizable and they only file the attorney fee
disclosure. How will our local trustee (probably Rojas-Northern division
case) work this into our system?
Debtor (married filed separately) has two years remaining on a confirmed
CH13 plan in North Carolina. She moved to California a year ago and has
caused her case to be transferred here to the central district. The case is
just transferred and there is a new CDC case number. The prior attorney has
or will signed off on substitution of attorney.
Debtors parents want to pay me to represent debtor here in the CH13 and
other matters relating to finding relief from student loans; the debtor will
have $260,000 plus in loans when her ch13 is discharged. The plan payment
is minimal from debtors household income (debtors husband). Debtor is
unable to work and may satisfy the Brunner test. Debtor and her parents
understand that the student loan discharge is lot of work with low
probability of success but, given the amount owed they want to pursue all
options which may include filing an adversary to determine dischargeablity.
I believe I need to sub in to represent the debtor in the transfer of the
case; however if the parents have hired me find a solution to the debtors
student loan problem it seems like my client may be the parents, or I have
two clients the parents and the debtor.
My question is reporting the attorney compensation. The parents are paying
my fee, Ive read 330 and 331, FRBP 2016, and LBR 2016-1 and 3015-1, as
well as the Guide to Applications for Professional Compensation. I dont
see any guidance regarding third party attorney fee payments other than
reporting the source. The attorney fee is not coming from the estate; but
my reading is that even though the fee is not coming from the estate Im
obligated to report the compensation on the Disclosure of compensation form.
However, looking back at the list serve and reading the rules it looks like
I will also have to file the RARA when I sub in, but if Im actually hired
to do an adversary, the fee for the adversary does not go in the RARA, or
the disclosure statement right?
Best Regards
Larry Webb
Law Office of Larry Webb
484 Mobil Ste 43
Camarillo, Ca 93010
805-987-1400
Email Webblaw@Earthlink.net
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