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Attorney Fees when converting from 13 to 7
Christine:
I always considered the notice of conversion included in the ch 13 fee.
The difficulty with conversions come in both 13's and 11's.
The state bar says you cannot withdraw without a substitution or a court order. If you make a motion to withdraw, it is unlikely that a court will let you withdraw, as you filed the case and conversion is often in the cards.
Chapter 7 precludes your payment from chapter 7 assets, so you won't get any fees from the 7, except, as Wes said, if the court, in the 13 or the 11 approved fees as an administrative expense.
I usually eat the fees as a cost of doing business, but if you put in your 13 or 11 retainer that the retainer did not include conversion,
Sent from my iPad
On Apr 25, 2013, at 9:47 AM, Christine Wilton wrote:
> Colleagues,
>
> A question came up about attorney fees when converting from a chapter 13 case to a chapter 7. I remember a conversation with Wes Avery on this subject [at one of our specialization classes] and he stated that any monies owed, are discharged upon conversion because we cannot be a creditor in chapter 7, unless we obtained an order approving a fee application.
>
> Prior to Confirmation Timing: Debtor is in a chapter 13 prior to confirmation and converts to a chapter 7. Are we able to collect the remainder of our RARA fees that were supposed to go into the plan? If we cannot collect our fees, then are we permitted to enter into a separate fee agreement to notice the conversion and represent the debtor at their 341a hearing?
>
> RARA item #15 requires we file "any other motions that may be necessary to appropriately represent the debtor," which likely includes 'notice of conversion.' Although a notice of conversion is not a motion, it appears to fall within the scope of the RARA that allows for hourly fees. Unfortunately, we would need to perform the work first and file a fee app, but it makes no sense because the debtor's in a chapter 7 immediately and the rara does not apply in chapter 7.
>
> What Code Section(s) discusses these issues?
>
> Does it change AFTER Confirmation?
>
> Thanks in advance for your input.
>
> --
> Christine A. Wilton, Esq.
> Law Office of Christine A. Wilton
>
> Our New Office Location:
> 12650 Hoover Street
> Garden Grove, CA 92841
>
> Mailing:
> 4067 Hardwick Street, Suite 335
> Lakewood, CA 90712
>
> Office: 877-631-2220
> Cell: 562-824-7563
> Fax: 1-636-212-7078
> Email: attorneychristine@gmail.com
> Web: www.attorneychristine.com
> Blog: www.losangelesbankruptcylawmonitor.com
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Colleagues,
A question came up about attorney fees when converting from a chapter 13
case to a chapter 7. I remember a conversation with Wes Avery on this
subject [at one of our specialization classes] and he stated that any
monies owed, are discharged upon conversion because we cannot be a creditor
in chapter 7, unless we obtained an order approving a fee application.
Prior to Confirmation Timing: Debtor is in a chapter 13 *prior to
confirmation* and converts to a chapter 7. Are we able to collect the
remainder of our RARA fees that were supposed to go into the plan? If we
cannot collect our fees, then are we permitted to enter into a separate fee
agreement to notice the conversion and represent the debtor at their 341a
hearing?
RARA item #15 requires we file "any other motions that may be necessary to
appropriately represent the debtor," which likely includes 'notice of
conversion.' Although a notice of conversion is not a motion, it appears to
fall within the scope of the RARA that allows for hourly fees.
Unfortunately, we would need to perform the work first and file a fee app,
but it makes no sense because the debtor's in a chapter 7 immediately and
the rara does not apply in chapter 7.
What Code Section(s) discusses these issues?
Does it change *AFTER Confirmation?*
Thanks in advance for your input.
Christine A. Wilton, Esq.
Law Office of Christine A. Wilton
*Our New Office Location:
12650 Hoover Street
Garden Grove, CA 92841*
*Mailing:*
4067 Hardwick Street, Suite 335
Lakewood, CA 90712
Office: 877-631-2220
Cell: 562-824-7563
Fax: 1-636-212-7078
Email: attorneychristine@gmail.com
Web: www.attorneychristine.com
Blog: www.losangelesbankruptcylawmonitor.com
***************************
Confidentiality and Privilege. This e-mail message, including attachments,
is intended solely for review by the intended recipient(s) and may contain
confidential and privileged information. Any unauthorized review, use,
disclosure, or distribution is prohibited. Review by anyone other than the
intended recipient(s) shall not constitute a waiver of any ATTORNEY-CLIENT
PRIVILEGE or ATTORNEY WORK PRODUCT PROTECTION that may apply to this
communication. If you are not the intended recipient, please contact the
sender by return e-mail and destroy all copies of the original message.
Tax Advice Disclosure. Any tax information or written tax advice contained
in this email message, including attachments, is not intended to and cannot
be used by any taxpayer for the purpose of avoiding tax penalties that may
be imposed on the taxpayer. (The foregoing legend has been affixed pursuant
to U.S. Treasury Regulations governing tax practice.)
Colleagues,A question came up about attorney fees when converting from a chapter 13 case to a chapter 7. I remember a conversation with Wes Avery on this subject [at one of our specialization classes] and he stated that any monies owed, are discharged upon conversion because we cannot be a creditor in chapter 7, unless we obtained an order approving a fee application.
Prior to Confirmation Timing: Debtor is in a chapter 13 prior to confirmation and converts to a chapter 7. Are we able to collect the remainder of our RARA fees that were supposed to go into the plan? If we cannot collect our fees, then are we permitted to enter into a separate fee agreement to notice the conversion and represent the debtor at their 341a hearing?
RARA item #15 requires we file "any other motions that may be necessary to appropriately represent the debtor," which likely includes 'notice of conversion.' Although a notice of conversion is not a motion, it appears to fall within the scope of the RARA that allows for hourly fees. Unfortunately, we would need to perform the work first and file a fee app, but it makes no sense because the debtor's in a chapter 7 immediately and the rara does not apply in chapter 7.
What Code Section(s) discusses these issues?Does it change AFTER Confirmation?Thanks in advance for your input.-- Christine A. Wilton, Esq.Law Office of Christine A. Wilton
Our New Office Location:12650 Hoover StreetGarden Grove, CA 92841Mailing:4067 Hardwick Street, Suite 335Lakewood, CA 90712Office: 877-631-2220Cell: 562-824-7563
Fax: 1-636-212-7078Email: attorneychristine@gmail.comWeb:
The post was migrated from Yahoo.