Local Rule LR 2016-2: No‐Look Fees in Chapter 13 Cases

LR 2016-2 No‐Look Fees in Chapter 13 Cases

(a) No‐look chapter 13 fee schedule. The court will maintain a schedule of fees presumed to be reasonable compensation to attorneys representing chapter 13 debtors. The schedule is included in the Appendix to these Local Rules.

(b) Payment of presumed reasonable fees. Counsel for the debtor in a chapter 13 case need not file an application for compensation in the following circumstances in which administrative expenses are deemed allowed under 11 U.S.C. § 503(b):

(1) Presumptively reasonable fee through confirmation. If the total amount of compensation that counsel agreed to accept for representing the interests of the debtor in connection with the case, as disclosed pursuant to 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure 2016(b), is less than or equal to the presumptively reasonable fee through at least plan confirmation and no party has objected to the compensation, then upon the entry of an order confirming the plan, counsel is allowed compensation in the agreed-to amount, such compensation is allowed as an administrative expense, and the trustee may pay counsel the balance of the allowed compensation in accordance with the confirmed plan, unless the court orders otherwise.

(2) Presumptively reasonable fee for post-confirmation plan modification. If the debtor requests a modification of the confirmed plan, the request includes additional compensation to counsel for preparing and filing the request, the amount of the additional compensation is less than or equal to the presumed reasonable fee, and no party has objected to the compensation, then upon the entry of an order granting the request and modifying the plan, counsel is allowed compensation in the amount stated in the request, such compensation is allowed as an administrative expense, and the trustee may pay counsel the balance of the allowed compensation in accordance with the modified plan, unless the court orders otherwise.

(3) Presumptively reasonable fee through dismissal before confirmation. If the court dismisses the case without confirming the plan, counsel is allowed the presumed reasonable fee or the total amount of compensation that counsel agreed to accept (as described above), whichever is less; such compensation is allowed as an administrative expense; and the trustee may pay counsel the balance of the allowed compensation in accordance with 11 U.S.C. § 1326(a)(2), if no party has objected to the compensation, unless the court orders otherwise.

(4) Payment. The chapter 13 trustee may withhold compensation payable under this subsection until the court enters an order authorizing the payment. The debtor or the trustee may request entry of an order requiring payment of compensation allowed under this subsection.

(c) Objection procedure.

(1) Any party in interest may object to or request a hearing on the reasonableness of compensation paid to a chapter 13 debtor's attorney.

(2) If a party in interest objects to the presumed reasonable fee or asks the court to limit compensation to an amount less than the amount presumed reasonable, the attorney requesting compensation must file an application for compensation in accordance with the requirements of Local Rule 2016-1. The attorney requesting compensation bears the burden of proving that the actual fee is reasonable.

(d) Compensation exceeding the presumed reasonable amount. If a chapter 13 debtor's attorney seeks total compensation that exceeds the presumed reasonable fee (including all compensation, whether pre- or post-petition, even if in connection with the case before its conversion to chapter 13), the attorney must file one or more fee applications under Local Rule 2016-1 for all services and expenses for which the attorney seeks compensation. The application must include a request for approval of the total compensation that the chapter 13 debtor's attorney is seeking. The total compensation includes both the presumed reasonable fee and any compensation that exceeds the presumed reasonable fee, and the request for compensation must be accompanied by the information required by Local Rule 2016-1(a).