25bk18742; 25bk11248; 25bk17705
The court held that Semrad’s fee agreement with chapter 7 debtors violates Sections 526 and 528 of the Bankruptcy Code and Local Rule 2016-1. Semrad routinely represents chapter 7 debtors for no money down and requires debtors to sign an agreement promising to pay postpetition. After filing the petition, Semrad then charges $2400 to $2600, and if a client refuses to sign a post-petition agreement promising to pay or fails to pay, then Semrad threatens to withdraw as counsel. The court held that Semrad was charging clients post-petition for prepetition work, which it may not do. The court ordered disgorgement of any fees collected in the consolidated cases.