Summary
reducing the allowed fees for chapter 13 debtor's counsel in reliance on the court's "own experience"
Summary of this case from In re YoungOpinion
Case No. 06-13245PM.
February 8, 2007
MEMORANDUM OF DECISION
This matter is before the court on the Trustee's objection to attorney's fees sought in this case of $4,500.00 and the Debtors' opposition thereto. The matter came before the court for hearing on February 6, 2007. The court has carefully considered the arguments of the parties and the record of this case and finds that this is an unexceptional Chapter 13 case. Debtors scheduled $38,653.00 in unsecured debt, secured debt consisting of a mortgage on their home, and, most notably, over $36,000.00 in the form of a claim secured by a 2007 Chevy Tahoe purchased 103 days prior to the filing of this bankruptcy case on June 6, 2006. Payments on this vehicle are $772.92 a month.
While counsel's Disclosure of Compensation filed pursuant to Bankruptcy Rule 2016(b) states that the law firm agrees to represent the Debtors for the duration of the bankruptcy proceeding, the fact is that counsel did not represent the Debtors in defense of a motion for relief from stay brought by the holder of the Note secured by Debtors' automobile. In exercising the court's responsibility under § 329(b) of the Bankruptcy Code to ascertain the reasonable value of the services rendered, the court finds that a fee of $4,500.00 in the circumstances of this case is excessive. In making this decision, the court relies upon its own experience in examining literally thousands of cases that pass through the bankruptcy process. The court will allow a total fee of $3,750.00 to counsel for service rendered to Debtors, with $1,750.00 having been paid initially and the balance of the compensation to be paid out at the rate of $100.00 a month.
Counsel for the Trustee shall submit an appropriate order.