Local Rule 2016-2: PAYMENT OF DEBTOR'S ATTORNEY'S FEES IN CHAPTER 13

RULE 2016-2. PAYMENT OF DEBTOR'S ATTORNEY'S FEES IN CHAPTER 13.

(a) Presumed Reasonable Fee in Chapter 13 Case. Unless an objection is filed and sustained, or the Court sua sponte determines otherwise, the debtor's attorney's fees will be presumed reasonable up to the amounts set forth in Vt. LB Appendix XI and may be allowed as an administrative expense in a chapter 13 case.

(b) Payment of Debtor's Attorney's Fees in Chapter 13 Case. Attorney's fees set forth in Bankruptcy Rule 2016(b) disclosure statement that are not paid in full prior to the filing of the case must be paid through the debtor's plan and may be paid ahead of other creditors if that treatment is both set forth in the plan and approved by the Court. Any attorney's fees incurred after the initial Bankruptcy Rule 2016(b) statement is filed (1) must be disclosed promptly in an amended Bankruptcy Rule 2016(b) statement, (2) may be charged to the debtor only after the Court approves them, and (3) must also be paid through the plan.

(c) Applications for Fees in Excess of the Presumed Reasonable Fee. If a debtor's attorney seeks a fee higher than the presumed reasonable fee, the plan and the Bankruptcy Rule 2016(b) statement must include an explanation of why the higher fee is warranted in the case, and the attorney must be prepared to file a fee application for the higher amount of fees. Attorneys must maintain time records and be prepared to demonstrate the reasonableness of all fees they charge regardless of whether the amount charged is below, at, or above the presumed reasonable fee.

(d) Other Presumed Reasonable Fees.

(1) Presumed Reasonable Fees for Certain Motions. For certain routine motions, there is a rebuttable presumption that a fee is reasonable if it does not exceed the amounts specified in Vt. LB Appendix XI. An attorney may request fees as part of a motion or application, without a separate fee application, if the fees do not exceed the presumed reasonable fee for that motion or application.

(2) Fees Higher than Presumed Reasonable Fees. Counsel may seek a fee higher than the presumed reasonable fee by filing a fee application in compliance with these Rules. The availability of a presumed reasonable fee does not entitle counsel to seek a fee that exceeds the value of the time actually spent on the motion or relieve counsel of the obligation to keep accurate, contemporaneous time records.

(e) Duties of Applicant Seeking Compensation for Post-Petition Services. Except as provided in this Rule, if an attorney renders legal services post-petition, including post-mediation services related to loss mitigation, and they wish to be compensated for those services, the attorney must file:

(1) a fee application in a form and manner consistent with these Rules;

(2) an amended Bankruptcy Rule 2016(b) statement;

(3) a motion to modify the plan to

(A) increase the funds being paid to the chapter 13 trustee,

(B) extend the term of the plan,

(C) include an alternate funding source, or

(D) diminish the dividend to some creditors, if the funds being paid into the confirmed plan are not sufficient to fund the payment of fees sought;

(4) notice of motion; and

(5) a certificate of service.

(f) Consideration of Fees at Time of Dismissal. All motions to dismiss a chapter 13 case must contain a request that the Court consider whether any fees paid or due to the debtor's attorney should be allowed.