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There's A Storm A Brewin': The Ethics and Realities of Paying Debtors' Counsel in Consumer Chapter 7 Bankruptcy Cases and the Need for Reform

Terrence L. Michael

American Bankruptcy Law Journal2020article
ABDC B
Weight
0.26

Abstract

In a chapter 13 case, a debtor is required to surrender his or her disposable income to a chapter 13 trustee for distribution to secured and unsecured creditors under the terms of a chapter 13 plan that must be approved, or confirmed, by the bankruptcy judge Upon successful completion of a chapter 13 plan, a chapter 13 debtor receives a discharge 7 Opening the door to the bankruptcy courts became more complex 2005, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) 8 Debtors now must meet certain eligibility criteria to file a chapter 7 case, and are required to undertake both pre- and post-filing credit counseling order to be eligible to file the (the prepetition counseling) and receive their discharge (the postpetition counseling) PAYING DEBTORS' PROFESSIONALS IN CHAPTER 13 CASES While it takes a bit of statute surfing to reveal the answer, a review of the Bankruptcy Code and a bit of law reveals that, chapter 13 cases, counsel for the debtor can be paid postpetition for services rendered both before and after the is filed Debtors' counsel chapter 13 cases are expressly included the list of professionals who may be compensated chapter 13 cases under 330(a)(4)(B): In a chapter 12 or chapter 13 which the debtor is an individual, the court may allow reasonable compensation to the debtor's attorney for representing the interests of the debtor connection with the bankruptcy based on a consideration of the benefit and necessity of such services to the debtor and the other factors set forth this section 12 The vast majority of courts have held counsel for debtors chapter 13 cases may be paid for both pre- and postpetition services under the terms of a chapter 13 plan, as all of those services are performed in connection with the bankruptcy case as contemplated by 330(a)(4) 13 But unfortunately there is no such administrative classification for payment of attorneys' fees to debt' ors' counsel chapter 7 cases

Cite this paper

@article{terrence2020,
  title        = {{There's A Storm A Brewin': The Ethics and Realities of Paying Debtors' Counsel in Consumer Chapter 7 Bankruptcy Cases and the Need for Reform}},
  author       = {Terrence L. Michael},
  journal      = {American Bankruptcy Law Journal},
  year         = {2020},
}

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There's A Storm A Brewin': The Ethics and Realities of Paying Debtors' Counsel in Consumer Chapter 7 Bankruptcy Cases and the Need for Reform

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Evidence weight

0.26

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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