Bankruptcy Fee Agreement

Transcription

1 Bankruptcy Fee Agreement Purpose of Agreement: The purpose of this Agreement is to provide you with a listing of our fees, so that if you do in fact retain us, you understand what are fees are due in advance, what work we bill for on an hour basis, and what work is covered by your flat fee. If you do not understand any part of this document, please do not hesitate to ask us to explain it to you in greater detail. This fee agreement does not create an attorney-client relationship until also signed by Dawn Cutaia. Bankruptcy Chapters that are Covered: This fee agreement covers only our fees for filing a Bankruptcy Petition with the U.S. Bankruptcy Court for the Middle District of Pennsylvania on your behalf. It covers both Chapter 7 and Chapter 13 bankruptcy filings. If your case is converted from one chapter to another at any time while we are representing you, this fee agreement covers those conversions. Even if our fees go up while we are representing you, those increases apply only to new clients. However, if the law changes or the local bankruptcy rules change, requiring us to modify our fee agreement, then we will do so and those changes will apply to you as well. Methods of Payment Accepted: We accept personal checks, money orders, and cash only. If you pay with a check or money order, we prefer two checks or two money orders: one for the filing fee and one for attorney fees. If you provide us with only one, that is fine, but you agree that your check or money order will be deposited into our Operating account, and not our Trust account. Please note: We are NOT set up to accept credit cards or debit cards and therefore cannot accept them. We apologize for the inconvenience.

2 Initial Consultation: The initial consultation is FREE and is generally done over the phone. The purpose of this consultation is to provide you with general information about bankruptcy and as much information as we can about your specific circumstances. Please note that it is difficult to provide you with specific, reliable information about your case without having all of your financial information, but we will do our best to answer your questions, give you advice as to how you should proceed, and deal with any emergency issues. While we do discuss fees, the primary purpose is to give you as much information about your situation as is possible. Most initial consultations last 30 to 40 minutes; we don t rush through it. Pre-Bankruptcy Screening $250: After the initial consultation, we invite you to retain us to perform a pre-bankruptcy screening. The cost is $ This meeting lasts about two hours. Prior to this meeting you will be required to complete your bankruptcy paperwork online and bring all documents listed in your Bankruptcy Checklist. You can obtain the checklist and sign up for the online paperwork by going here, if you have not already done so: At this meeting you will be advised about whether a Chapter 7 or a Chapter 13 is appropriate under your circumstances and what your options are. The Means Test will be run, your budget will be reviewed, the bankruptcy exemptions will be applied to your property, and any and all issues that are apparent will be discussed with you in detail. Application of $250 paid: The money paid for the pre-bankruptcy screening will be applied to the total amount due for your bankruptcy, whether a Chapter 7 or Chapter 13, as outlined below. The payment is non-refundable, but you are not required to file bankruptcy with us or retain us for further work. Please note that if more than 12 months elapse between your pre-bankruptcy screening and the time you retain us to file your bankruptcy, we will need to reevaluate your situation, in which case we may charge you an additional fee of no more than $250, and the first $250 will NOT be applied to the overall fee. In other words, the fee for your bankruptcy will increase by $250.

3 Basic Fees Chapter 7 ($250 is included): Filing Fee: $335 (if this increases before your case if filed you will need to pay the higher amount). Attorney Fees (non-refundable): Individual or Joint Chapter 7: $1,500 plus filing fee, due in advance before we can file. Individual or Joint Chapter 7 where Debtor is a self employed business owner: $1,500 to $2,000, plus filing fee, due in advance before we can file. We will discuss with you during your initial consult if we feel the higher fee applies, although until you have your $250 pre-bankruptcy screening we won't be able to know for sure if it does or does not. Basic Services included: Review of financial situation and financial advice on bankruptcy alternatives, preparation of the petition and required schedules, filing petition with the court, and attendance at the required Section 341 hearing, review and filing of reaffirmation agreements where there is no presumption of hardship. Correspondence ( s, telephone calls etc) with you and others regarding these basic services is also included. Services not included, which are based on our hourly rate: Hourly Rate: Our hourly rate is $225 for attorney time and $125 for paralegal time. We bill in increments of.20 (12 minutes). We bill for all work done in addition to the basic services as outlined above, including, but not limited to, review of s and letters, telephone conferences, review of documents, negotiations, preparation of documents, attendance at court hearings, adversary actions, answering motions to lift the stay, motions to avoid liens, objections to discharge, negotiations with taxing authorities, reviewing, objecting or filing proofs of claim, negotiating post petition arrearages, attending hearings, review, filing, and negotiating reaffirmation agreements where there is a presumption of hardship, negotiating mortgage modifications, and conversions to other Chapters under the Bankruptcy Code.

4 Trustee Inquiries in Chapter 7 cases: Review and responses to inquiries from US Trustee or Panel Trustee requesting additional information are billed as follows: To review the inquiry and respond we charge a flat fee of $350, due in advance of our response. If the Trustee continues to object after we provide our written response by filing an actual objection, our hourly rate will apply, as outlined above. If we anticipate that we are going to get an inquiry, we reserve the right to request a retainer in the amount of $350 at the time we file your bankruptcy petition. If no inquiry is received, you will get a full refund of this $350 that was paid in advance. Amendment to Schedules: If we need to add creditors after your bankruptcy is filed, there is a $30 filing fee that goes to the bankruptcy court and we charge $30, for a total fee is $60, due before we can make the amendment. It is extremely rare for there to be fees in excess of the Basic Fee charged in a Chapter 7 case, other than inquires by the US Trustee which are a little more common. If there is the possibility of additional fees, you will be consulted and the issue will be discussed in detail before any additional fees are charged. Individual or Joint Chapter1 3($250included) : Filing fee: $310 (if this fee increases before you file you will need to pay the higher amount). A Chapter 13 case has two distinct parts: Pre-confirmation and Postconfirmation. When you file your Chapter 13 Plan, which is the document outlining what you intend to pay to the bankruptcy court and how you arrived at that number, it takes several months for the Plan to get confirmed. We charge separately for each part. The Pre-confirmation portion of your case is billed at a flat rate, as outlined below. The post-confirmation portion of your case is billed at our hourly rate. There are some services that are not included in the preconfirmation flat rate, even though they might be provided to you before your Plan is confirmed. Those services include loan modifications, mediation, appeals, and adversary actions. Pre-Confirmation non-refundable Attorney Fees: Individual or Joint Chapter 13: $4,000

5 Individual or Joint Chapter 13 Conduit Plans (you are paying your regular mortgage payment through the Plan): $4,500 If you own a business, or have a controlling interest in an LLC or Corporation, the fee is $5,000. Due in Advance: $1,500 is due before we can file, in addition to the filing fee. The balance will be paid through the Plan. We reserve the right to require a wage attachment at any time, and the Trustee can request one as well. Note that if you fall behind in your Plan payments, the Trustee almost always requires a wage attachment. The pre-confirmation fee ($4,000 or $4,500) covers the following preconfirmation work: Review of your financial situation and financial advice on bankruptcy alternatives, preparation of the petition and required schedules, filing the petition with the court, and attendance at the required Section 341 hearing, reviewing, objecting to, or filing proofs of claim, attending all pre-confirmation Confirmation hearings, negotiating post petition arrearages, and modifying your Plan. s, telephone calls, text messages, and correspondence, are also included. Remember that loan modifications, adversary actions, appeals, and mediation are not covered under the flat fee, and are billed at our hourly rate. Post-Confirmation Fees: Work done after your Plan has been confirmed is billed at an hourly rate of $225 an hour for attorney time and $125 an hour for paralegal time. Motions to Amend a Plan post-confirmation are a flat fee of $500 and Motions to Sell Real Estate are a flat fee of $1,000. All other work is billed hourly. Note that other than paying costs associated with your case, you will not be required to pay any fees directly to us. All attorney fees are paid through the Plan. Sometimes this increases your Plan payment but often it does not, as the additional fees will come out of the money you are already paying the Trustee. Before we can charge you additional fees, we will need Court approval. Sometimes this requires the filing of a fee petition with the Court. You understand that as long as our request for additional fees complies with this Fee Agreement, you will sign any documentation required by the bankruptcy court to allow us to be paid these additional fees.

6 Post-confirmation fees, billed at our hourly rates as outlined above, include any and all work done after your Plan has been confirmed, including, but not limited to: negotiating post petition arrearages, negotiating mortgage modifications, attending any hearings or appearance in Court, motions to incur debt, motions to amend plan ($500 flat fee), and motions for the sale of real estate ($1,000 flat fee). We reserve the right to charge for s, telephone calls, correspondence, and any other work done on your case post-confirmation, but it is our office policy NOT to charge for s, telephone calls, and correspondence, if that is the only work we are billing for, and if doing so would increase our clients' Trustee payment. You will reimburse us for costs incurred whether our office serves documents directly or we use a third party service. Conversion from one Chapter to another Chapter: If you convert from a Chapter 7 to a Chapter 13, you will receive a credit, in the amount of $500, towards your Chapter 13 case, and not be required to pay anything upfront. As such the balance you will pay in the Plan will be $3500. The fees for a Chapter 13 as outlined above will still apply. If you convert from a Chapter 13 to a Chapter 7, you will be required to pay $500 prior to us converting your case. Dismissal of Chapter 13: If you file a Chapter 13 bankruptcy and your Plan is not confirmed or your case is dismissed at any time, you agree that any money being held by the Trustee shall be returned directly to Cutaia Law, LLC and any outstanding attorney fees owed at that time shall be paid out of those funds; any remaining funds shall be refunded to you within 30 days. Agreement to Sign Required Documents: You further agree that if any additional documents are required after we file your bankruptcy, whether required by the bankruptcy court or required by us so that you are able to fulfill your obligations under this Agreement, you will promptly sign those documents and return them to us. Third Party Fees: There is a fee for the required counseling sessions that you must complete, both before and after the bankruptcy petition is filed. These fees are paid by you directly to the counseling agency. You understand that you must provide us with any and all information necessary to prepare a Bankruptcy Petition under Chapter 7 or 13 of the

7 U.S. Bankruptcy Code and that you have signed and received any necessary notices and disclosures as required by law, which have been provided to you with this Agreement. NOTE that for Chapter 13 cases, the Bankruptcy Court now requires clients and their attorneys to sign a Rights and Responsibilities form, which we will provide to all Chapter 13 clients. If you have any questions about this fee agreement, please do not sign it. Do not hesitate to ask us any questions you may have. By signing below you acknowledge that you have read this Agreement before signing, and that you understand your rights and responsibilities and have received a copy of this Agreement, electronically or a hard copy. Date: Signature: Date: Signature: