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Review of Expedited Chapter 13 Debtors Attorney Fees

Wednesday, April 19, 2023

Review of Expedited Chapter 13 Debtor’s Attorney’s fees under SC LBR 2016-1(b)(1)


As part of the annual local rule review process that will begin in July and conclude by November, the Court will consider an amendment that better describes the work included within the “Expedited Fee Amount” referenced in the rule below and will review the corresponding fee amounts in bold. Any comments or suggestions related to that process should be submitted within 30 days to scbml_lr_comment@scb.uscourts.gov.


Chambers Guidelines


CHAPTER 13 PROCEDURES
A. Attorney’s Fees
The expedited Chapter 13 debtor’s attorney’s fees amount for purposes of SC LBR 2016-1(b)(1) is $4,000.00 for consumer cases and $4,500.00 for business cases. After confirmation, and to the extent funds are available after deduction of the trustee’s commission, the trustee may disburse up to $1,500.00 to counsel as part of the initial disbursement under the Chapter 13 plan.


SC LBR 2016-1(b)(1)



b. Chapter 13 Cases.
1. Expedited Fee Approval Procedure. An attorney representing a debtor in a chapter 13 case may obtain approval of attorney’s fees without the filing of a formal fee application and a hearing when the attorney and the debtor(s) agree in writing that the fee for representation will be equal to or less than the amount set forth in Chambers Guidelines at the time of the filing of the case (collectively, the "Expedited Fee Amount").1 Unless the Court orders otherwise, the Expedited Fee Amount is deemed an allowed administrative claim under 11 U.S.C. § 503(b)(2). The amount may be claimed by the attorney’s filing of the Attorney Fee Disclosure Statement pursuant to Fed. R. Bankr. P. 2016(b) (Director’s Bankruptcy Form B2030). The B2030 Form shall clearly indicate the fee agreed upon, the amount paid to date, and the amount to be paid through the chapter 13 plan, and shall define any charges or potential charges for supplemental fees described in paragraph (b)(2). Counsel must include as an attachment to the B2030 Form, a copy of counsel’s signed representation agreement with the debtor(s).


1 This amount includes all typical costs and expenses other than filing fees and costs paid to non-attorney third
parties for services necessary for the case, such as credit reports, credit counseling, and financial management course
fees.