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Staying in a chapter 13 case after motion to dismiss or a relief
Listmates,
When a motion to dismiss or a relief motion is filed in a chapter 13 case,
it is often not clear that a case will survive. The case could be
dismissed or debtor could abandon the case.
This raises a dilemma for counsel working to oppose the motion. Getting
paid through the plan is the standard way to get paid. However, it may be
very likely that by the time attorney's work is done, there will be no case
and no plan to pay him.
Alternatively, if the case survives, attorney's fees will be added to the
plan. An amended plan may be necessary with associated attorney's fees.
Quite often a debtor cannot afford a higher monthly payment needed to
accommodate additional attorney's fees.
When some chapter 13 task is planned in advance, it may be possible to
discuss other payment options with debtor, such as payment from friends or
family. This route is not available once the motion has been filed.
What can counsel do in this situation to assure that he is paid for his
work?
It seems unethical to run (withdraw) at the first sign of trouble. But it
makes no sense that doing free work is the only alternative. In some cases
the free work scenario could repeat several times during the life of the
case.
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
Listmates,When a motion to dismiss or a relief motion is filed in a chapter 13 case, it is often not clear that a case will survive. The case could be dismissed or debtor could abandon the case.This raises a dilemma for counsel working to oppose the motion. Getting paid through the plan is the standard way to get paid. However, it may be very likely that by the time attorney's work is done, there will be no case and no plan to pay him. Alternatively, if the case survives, attorney's fees will be added to the plan. An amended plan may be necessary with associated attorney's fees. Quite often a debtor cannot afford a higher monthly payment needed to accommodate additional attorney's fees.When some chapter 13 task is planned in advance, it may be possible to discuss other payment options with debtor, such as payment from friends or family. This route is not available once the motion has been filed.What can counsel do in this situation to assure that he is paid for his work?It seems unethical to run (withdraw) at the first sign of trouble. But it makes no sense that doing free work is the only alternative. In some cases the free work scenario could repeat several times during the life of the case.-- Alik SegalAlik.Segal@gmail.com310-362-6157California Central District
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