New Chapter 13 Fee Allowance

Thursday, April 26, 2007

The Bankruptcy Judges of the Northern District of Illinois have amended the procedures for awards of attorney fees in Chapter 13 cases. For cases filed on or after May 1, 2007, a fee of up to $3500 will be allowed without an itemization of services, provided that the debtor and counsel enter into an amended version of the court's Model Retention Agreement, which provides for representation by counsel throughout the pendency of the case. If a previous
Chapter 13 case of the debtor or the debtor's spouse was dismissed within a year of the commencement of the case in which fees are sought, the court retains the discretion to award less than $3500. The option of a flat fee for services rendered only through confirmation has been eliminated. If the new Model Retention Agreement is not entered into, or if counsel seeks a fee greater than $3500, an itemization will be required.
Copies of the General Order implementing this procedure, as well as the revised Model Retention Agreement and a revised form for fee applications are available as follows:

General Order No. 07-02
Model Retention Agreement
Chapter 13 Fee Application