Local Rule 2016-1: COMPENSATION OF PROFESSIONALS

RULE 2016-1 COMPENSATION OF PROFESSIONALS

(A) Applications for Compensation: For applications seeking in excess of the amount specified in the "Adjustment of Dollar Amounts" statement published and updated periodically by the Clerk, as approved by the Court, the party seeking compensation or reimbursement for services under FRBP 2016 shall select a hearing date and give notice as required in FRBP 2002(a)(6) and 2002(c)(2). The party shall file with the Court proof of service evidencing proper notice of the scheduled hearing.

(B) Attorney's Disclosure Statement: Pursuant to 11 U.S.C. §329 and FRBP 2016, each attorney representing a debtor under any chapter of the Bankruptcy Code shall file an Attorney's Disclosure Statement, irrespective of the amount of fees received or requested. The Disclosure Statement, if not filed with the petition, shall be filed not later than 14 days after the later of the filing of the petition or the date that counsel is engaged. If the representation by counsel is not in a case assigned to the Electronic Case Files System, the Statement shall be filed in original only, with a certificate evidencing service upon the United States trustee and the case trustee, if any. Otherwise, the Statement shall be filed consistent with the Electronic Case Files System requirements approved by the Court.

(C) For Debtor's Attorney in Chapter 13 Case

(1) Generally

(a) The Court may award fees and expenses to the attorney for the debtor(s) in a chapter 13 case, without a hearing, at the Court's discretion, in an amount not to exceed the fee, as specified in the "Adjustment of Dollar Amounts" statement published and updated periodically by the Clerk, as approved by the Court, as provided for in subparagraph (C)(3)(a) of this Local Bankruptcy Rule, and subject to periodic adjustment, as provided for in subparagraph (C)(3)(e) of this Local Bankruptcy Rule.

(b) (i) An application for an initial request for compensation in excess of the amount authorized under subparagraphs (C)(1)(a) and (C)(3)(a) must conform to Federal Rule of Bankruptcy Procedure 2016 and this Local Bankruptcy Rule.

(ii) An application for a supplemental fee, as authorized under subparagraph (C)(3)(d), regardless of the amount sought, must conform to Federal Rule of Bankruptcy Procedure 2016 and this Local Bankruptcy Rule.

(iii) An application, as prescribed in subparagraph (C)(1)(b)(i) or (ii) of this Local Bankruptcy Rule, must conform to the requirements set forth in subparagraphs (C)(3)(d)(i) and (ii) of this Local Bankruptcy Rule.

(c) At the commencement of the chapter 13 case, the attorney for the debtor(s) must elect and declare the manner with which to request compensation in the case, either:

(i) as set forth in subparagraphs (C)(1)(a) and (C)(3)(a) of this Local Bankruptcy Rule, or

(ii) by filing an application for compensation and reimbursement of expenses in the manner set forth in subparagraphs (C)(3)(d)(i) and (ii) of this Local Bankruptcy Rule.

(d) An attorney requesting compensation by application in accordance with subparagraph (C)(1)(c)(ii) of this Local Bankruptcy Rule, shall file with the Clerk a properly completed form substantially in compliance with the Application for Compensation of Attorney for Debtor(s) approved by the Court (Exhibit 10-A to these Local Bankruptcy Rules) and available from the Clerk upon request or from the Court's Internet web site, www.vaeb.uscourts.gov. A proposed order allowing compensation shall include the summary (and accompanying table), as set forth at paragraph 4 of Exhibit 10-A.

(2) Fees Requested Not in Excess of $3,000 [For All Cases and Proceedings Filed Prior to August 1, 2014]: Exhibit 9 to these Local Bankruptcy Rules, with respect to the time periods specified therein, for all cases and proceedings filed prior to August 1, 2014, shall govern fee and actual and necessary expense reimbursement requests.

(3) Amount of "No-Look" Fee Specified under Subparagraphs (C)(1)(a) and (C)(3)(a)

(a) If the initial fee charged to a debtor(s) for services in a Chapter 13 case does not exceed the fee, as specified in the "Adjustment of Dollar Amounts" statement published and updated periodically by the Clerk, as approved by the Court, (excluding the initial filing fee), a formal application for approval and payment of the unpaid amount through the chapter 13 plan will not be required if the total fee and the unpaid portion clearly is set forth in the chapter 13 plan, and the fee is consistent with the disclosure of compensation statement filed under Federal Rule of Bankruptcy Procedure 2016 at the commencement of the case. An election under this subparagraph must be made at the commencement of the case; otherwise, it shall be deemed waived and compensation and reimbursement of expenses shall be requested in the manner set forth in subparagraph (C)(3)(d)(i) and (ii) of this Local Bankruptcy Rule.

(i) The chapter 13 plan and Rule 2016 disclosure of compensation statement will be treated as the application required by Rule 2016(b), and the order confirming the plan will be treated as an order approving compensation.

(ii) The attorney for the debtor(s) shall serve a copy of the chapter 13 plan and Rule 2016 disclosure of compensation statement on the debtor(s), the chapter 13 trustee and the United States trustee. With the Rule 2016 disclosure of compensation statement, the attorney for the debtor(s) shall file a proof of service evidencing proper service, as set forth herein.

(iii) Any objection to allowance and payment of compensation in the amount stated in the chapter 13 plan must be filed no later than the last day for filing objections to confirmation of the plan. If no objection is filed, the Court may approve the disclosed compensation and confirm the plan without holding a hearing.

(iv) The attorney for the debtor(s) should not send a bill directly to the debtor(s). If the debtor(s) receive(s) a bill from the debtor's(s') attorney, the debtor(s) should send a copy of the bill to the chapter 13 trustee.

(v) Notwithstanding the provisions of subparagraph (C)(3)(a)(iii) of this Local Bankruptcy Rule, nothing will prevent or prohibit the United States trustee or the chapter 13 trustee from filing pleadings or otherwise challenging fees awarded under this rule to the attorney for the debtor(s) after confirmation of the debtor's(s) plan, should circumstances warrant such a challenge. Any such challenge shall be determined by the Court after notice and a hearing. In addition, the Court, sua sponte, may suspend the application of this rule to the debtor's(s') attorney. In such case, the attorney for the debtor(s) may request a hearing within 14 days of the Court's ruling.

(b) Exhibit 9 to these Local Bankruptcy Rules does not apply to the foresaid cases and proceedings under paragraph (C)(3) of this Local Bankruptcy Rule.

(c) Except as set forth at subparagraph (C)(3)(d) of this Local Bankruptcy Rule, if the attorney for the debtor(s) elect(s), and declare(s), at the commencement of the case, to request compensation not to exceed the amount set forth in subparagraphs (C)(1)(a) and (C)(3)(a), that attorney shall not unbundle legal services in the case and must cover, at a minimum, all services typically required during the pendency of the case including, but not limited to, those that reasonably would be expected to obtain confirmation of a plan, and, ultimately, completion of the plan and, if available, a discharge.

(d) Should a debtor(s) need to commence or defend an adversary proceeding under Part 7 of the Federal Rules of Bankruptcy Procedure, or an appeal, the attorney for the debtor(s) may request leave to withdraw as attorney or to seek additional compensation in connection with the adversary proceeding or appeal. The representation of a debtor(s) in connection with any such adversary proceeding or appeal would be treated as a separate billing matter, for which the Court may allow additional compensation, after notice and a hearing, on a time-and effort basis, subject to the supplemental fee application process set forth below.

(i) The supplemental fee application must be supported by detailed, contemporaneous time and expense records showing, for each discrete activity, the date and time expended, identity of the attorney or paralegal providing the service and amount requested. For the purpose of this provision, a "contemporaneous" time and expense record is one made at or near the time of the activity being recorded or the expense being incurred, but in any event no later than the next business day. Any time entry that has been reconstructed because contemporaneous records were not made, or, if made, are not available, must be identified clearly, and an explanation provided for the absence of a contemporaneous record. The application for supplemental compensation shall state the period covered by the application. Time entries should be shown to the nearest tenth of an hour (i.e., the nearest 6 minutes), and travel time should be shown separately from any court appearance or other out-of-court activity to which it relates. The application shall affirmatively state the amount, if any, of posted time and charges written off in the exercise of billing discretion.

(ii) An attorney requesting supplemental compensation by application in accordance with subparagraph (C)(3)(d)(i) of this Local Bankruptcy Rule, shall file with the Clerk a properly completed form substantially in compliance with the Application for Supplemental Compensation of Attorney for Debtor(s) approved by the Court (Exhibit 10-B to these Local Bankruptcy Rules) and available from the Clerk upon request or from the Court's Internet web site, www.vaeb.uscourts.gov. A proposed order allowing compensation shall include the summary (and accompanying table), as set forth at paragraph 4 of Exhibit 10-B.

(iii) At the Court's discretion, in addition to the supplemental fee application described in subparagraph (C)(3)(d)(i) above, a hearing on the application need not be held upon the consent of the chapter 13 trustee as evidenced by that individual's signature on a proposed order approving the application.

(iv) In lieu of the procedure set forth in subparagraph (C)(3)(d)(i) of this Local Bankruptcy Rule, the attorney for the debtor(s) may elect to disclose a fee of $500 plus any out-of-pocket expenses (e.g., the filing fee, title search fees or appraisal fees) to represent the debtor(s) in such an action, the disclosure of which must be made at the commencement of the adversary proceeding, appeal, or motion initiating the action to determine the extent, validity, priority or enforceability of a lien secured by the debtor's(s') principal residence.

(e) The level of compensation set forth at subparagraphs (C)(1)(a) and (C)(3)(a) of this Local Bankruptcy Rule will be adjusted on a periodic basis to apply to the cases commenced after the adjusted level becomes effective by:

(i) the percentage of adjustment to the rate of pay prescribed in the General Schedule for statutorily affected federal civilian employees;

(ii) an increase in the filing fee for a case commenced under chapter 13 of title 11, United States Code.

Comments 2016-1(B) This change clarifies how compensation should be paid or disclosed when new counsel is substituted. [Change effective 2/1/00.]

2016-1(C) This paragraph is repealed. Its provisions will be governed by standing order of the Court. [Repeal effective 3/17/08.]

2016-1 A time-computation adjustment has been made at paragraph (B) to conform to a revision to the Federal Rules of Bankruptcy Procedure that takes effect December 1, 2009. Stylistic changes have been made to the text of the LBR as well. [Changes effective 12/01/09.]

2016-1(C) Standing Order No. 08-1 is rescinded effective as to chapter 13 cases filed on or after the effective date of this paragraph's implementation. That standing order remains in effect, however, for previously filed chapter 13 cases. This paragraph includes procedures governing all chapter 13 cases filed on or after the effective date of this paragraph's implementation. [New Rule effective 8/1/14.]

2016-1 Subparagraphs (C)(1)(a) and (C)(3)(e) are amended to provide a means by which adjustments to dollar amounts provided for in this rule can be made available without the necessity of amending discrete rule provisions. For this purpose, the Clerk has been directed by the Court to publish an "Adjustment of Dollar Amounts" statement, and update that statement periodically, as directed by the Court. To do so, the Clerk has created an "Adjustment of Dollar Amounts" hyperlink at the Court's Internet web site home page, www.vaeb.uscourts.gov. A stylistic change also is made to subparagraph (C)(1)(a). [Changes effective 12/1/15.] [Updated Comment effective 12/22/20.]

2016-1 Subparagraph (C)(3)(a)(iii) is amended, a new (iv) is added, and current (iv) and (v) are re-designated (v) and (vi), respectively, in light of the referenced change in procedure for the Norfolk and Newport News Divisions. (See combined Norfolk Standing Order No. 18-1 and Newport News Standing Order No. 18-1, which was entered on October 9, 2018, and provides that, "Confirmation Hearings will be held with regard to all Chapter 13 original and amended plans filed on or after October 29, 2018," in the aforesaid divisions of the Court.)

2016-1 Subparagraphs (C)(3)(a)(iii) is amended and (iv) is deleted so the referenced procedure is the same in all divisions of the Court. Subparagraph (C)(3)(d)(iii) is amended by deleting the term "endorsement" and substituting in lieu thereof the term "signature." [Changes effective 06/01/23.]

2016-1(A) The amendments to this rule provide that applicants seeking compensation (whether interim or final) above the amount specified by the Clerk in the "Adjustment of Dollar Amounts" statement must schedule such applications for hearing. [Changes effective 08/01/23.]