Attorney Fees when converting from 13 to 7
Posted: Fri Apr 26, 2013 8:57 am
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.
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