ATTORNEY–CLIENT REPRESENTATION AGREEMENT and
DISCLOSURE OF FEES PURSUANT TO 11 U.S.C. §§ 528(a)(1) and (2)
The United States Congress requires all parties who may ever want to enter into an agreement for bankruptcy services to execute a contract that explains our services, fees and charges and the terms of payment. This contract must be executed or ______Attorney at Law will not be able to represent you in a bankruptcy.
In consideration for services to be rendered to undersigned Client(s), ______of ______(Client(s) Address) (“Client(s)") by J______, Attorney at Law ("Attorney") located at ______(Attorney’s Address), in connection with representing Client(s) regarding filing and completing a Chapter 7 or Chapter 13 bankruptcy, Client(s), jointly and severally agrees to pay Attorney as follows:
A.Fees and costs
1.Chapter 7 bankruptcy
Total fees to file a Chapter 7 bankruptcy: $______. This includes attorney’s fees, the filing fee of $335.00, the mandatory pre-petition debt counseling and post-petition debtor education classes in the amount of $______and a fee for Due Diligence in the amount of $______. The Due Diligence fee involves obtaining a credit report and other information for us to be able to help you prepare for your bankruptcy. This amount must be paid in full before a Chapter 7 bankruptcy is filed.
2.Chapter 13 Bankruptcy
The base flat attorney’s fee for filing and representing you in a Chapter 13 bankruptcy case is $______for an individual (or married) person(s).
The minimum fee to get the case filed is $______, which includes a portion of the Attorney’s fees, the Court filing fee of $310.00, the mandatory pre-petition debt counseling and post-petition debtor education classes in the amount of $______and a fee for Due Diligence in the amount of $______. The Due Diligence fee involves obtaining a credit report and other information for us to be able to help you prepare for your bankruptcy. The balance of any unpaid attorney’s fees will be paid through your bankruptcy plan from your monthly payments to the Chapter 13 Trustee.
3.Expiration of attorney’s fees and all other fees
Based on the fluctuation of court filing fees and counseling fees, those fees stated above may change depending on when your bankruptcy is filed. This happens very seldom but if it applies to you we will inform you and ask you to pay the difference. Also, our attorneys’ fees may vary depending on the state of the law and practice. The amount of attorney’s fees described above is valid for six (6) calendar months following date of the execution of this document. Following the execution of this document, if your bankruptcy case is not filed within six (6) calendar months, you will need to sign a new contract with Attorney and the fees may change.
4.This is a classic retainer and all fees paid to Attorney are fees earned.
This is a Classic Retainer, and Client(s) acknowledges that all fees paid to Attorney are fees earned under said Classic Retainer. Attorney shall pay all fees associated as needed relating to all work contemplated herein by this representation. Unless stated otherwise, no fees shall be placed into any trust account. Client(s) will not receive a refund of legal fees paid for any reason. In the event that the case is not filed with the bankruptcy court for any reason, the money tendered to Attorney will not be refunded to Client(s) under any circumstances.
5.Services provided under the flat or hourly fee arrangement in all cases
The services of the attorney included in the base fee are those normally contemplated for a bankruptcy case. They include the following services to the extent they are requested or reasonably necessary for your effective representation:
(a)Meeting and counseling you in preparation for the filing of your bankruptcy and during your bankruptcy.
(b)Arranging the required pre-petition (pre-filing) credit counseling before you file the bankruptcy.
(c)Preparation and electronic filing of petition, schedules, supplemental local forms, Chapter 13 Plan (if necessary) and mailing matrix.
(d)Representing you in all dealings with the bankruptcy Trustees;
(e)Filing and litigating all motions to void or release liens on your personal property, with the exception of motions filed by the Trustee to avoid liens. Client(s) understands that filing a bankruptcy does not automatically discharge or remove liens from any personal estate. Client(s) agrees that the Attorney will not take any action to avoid (remove) any lien on personal property unless the Client(s) has informed the Attorney of the lien and the lien may be removed under the Bankruptcy Code. Client(s) agrees that the Attorney will rely on Client(s)’s statements concerning ownership of personal property and any liens attached to Client(s)’s personal property. Client(s) agrees that no personal property title search will be conducted. Client(s) agrees that Attorney will not conduct a public records search for lawsuits filed against Client(s) or judgments granted against Client(s). Client(s) must separately order and pay for public records search for lawsuits or judgments, if Client(s)s wishes to obtain one. Client(s) agrees to hold the Attorney harmless if Client(s) later discovers liens, lawsuits or judgments against Client(s) or against Client(s)’ personal property.
(f)Upon information received from you, taking steps necessary to avoid the termination of, or to allow the reinstatement of, your necessary utility services by providing faxed proof of filing of the petition to utility service creditors.
(g)Taking steps necessary to obtain the return of any repossessed vehicles necessary to the estate, including, but not limited to, the filing of Complaints to Compel Turnover.
(h)In the event of pending state or federal court litigation, listing the creditor, creditor’s attorney and court in your bankruptcy to receive notice from the Court, providing we receive this information from you.
(i)Sending out an information letter to you reminding you to attend the 341 hearing, specifying the time and location of that hearing, and providing information advising you as to the procedures of the 341 hearing.
(j)Appearing at the 341 meeting of Creditors with you, conferring with you to prepare you to appear at the 341 meeting, and advising you to cure any arrears on Chapter 13 plan payments (if necessary).
(k)Upon information received from you, taking steps necessary to terminate pending wage garnishments, including filing a Motion to Terminate Garnishment
(l)Attending all court hearings relating to: confirmation of the plan, show cause, and claims.
(m)Preparing and conducting all court-mandated pre-trial conferences, reports, briefs, etc.
(n)Responding to objections to plan confirmation and, where necessary, preparing an amended plan.
(o)Preparing, filing, and serving necessary modifications to a chapter 13 plan, which may include suspending, lowering, or increasing chapter 13 plan payments.
(p)Preparing, filing, and serving necessary amended statements and schedules, in accordance with information submitted by you, provided you pay any additional filing fees required by the Court.
(q)Preparing, filing, and serving necessary motions to buy, sell, or refinance real property when appropriate. (This is for chapter 13 clients only).
(r)In a chapter 13 bankruptcy, objecting to improper or invalid claims if necessary and if beneficial to the completion of your chapter 13 plan, based upon documentation you provide.
(s)Filing proofs of claims for creditors who fail to file claims, if it is in your best interest to file such a claim.
(t)Representing you in motions for relief from stay, if appropriate (this is for chapter 13 clients only).
(u)Upon information received from you, contacting creditors who continue to communicate with you after filing, by phone or in writing, and, if necessary and appropriate, file motions for sanctions, prepare testimony and exhibits, and appear for hearing.
(v)If necessary, contacting tax authorities or other third parties to gather information necessary for the case. However, such contact shall not include the obtaining of the names, addresses, account numbers and other information necessary for the inclusion and filing of creditors on any schedule of the petition, as it is your duty to provide such information to your attorney for the preparation of accurate bankruptcy schedules.
(w)Communicating with you by phone or being available for office appointments to discuss pending issues or matters in the present case.
(x)Providing such other legal services as are necessary for the administration of your case before the Bankruptcy Court.
(y)Arranging for a post-petition (after-filing) personal financial management class. You will pay the cost of this class directly to the agency providing the class.
(z)Assistance in the reaffirmation agreement process (Chapter 7 clients only). The reaffirmation assistance will include contacting the secured creditor about reaffirming on the debt, helping you fill out the reaffirmation paperwork, reviewing the reaffirmation agreement to determine if it will create an undue hardship on you or your dependents, sending the reaffirmation agreement to the creditor for their signature, filing the reaffirmation agreement (after you and the creditor have both timely signed) if necessary, filing a motion to approve the reaffirmation agreement if necessary, and filing rescission paperwork if you notify Attorney timely. Attorney may not sign or certify your reaffirmation agreement if, in the opinion of Attorney’s attorney, the payment of that debt will impose an undue hardship on you or any of your dependents and you cannot make the payment. In that event, you will need to attend a hearing before the Court to get the reaffirmation agreement approved. This may or may not be approved and you may lose the collateral which secures that debt.
(aa)Any other service (in a Chapter 13 case) not previously addressed above and required in the Rights and Responsibilities of Chapter 13 Debtor’s Attorneys document attached.
B.Other possible attorney’s fees and costs.
1.Situations in which additional attorney’s fees may arise. In some bankruptcy cases, there are additional legal services which are beyond those contemplated in the flat fee, and which are not required to be provided by the Attorney. These legal services are listed below:
(a)The prosecution of an Adversary proceeding filed by you against creditors (including the defense of motion for relief from stay or co-debtor stay when an adversary lawsuit or counterclaim against the creditor is filed on your behalf). An example of this would be filing an adversary complaint to avoid a lien on your real estate.Client(s) understands that filing a bankruptcy does not automatically discharge or remove liens from any real estate. Client(s) agrees that the Attorney will not take any action to avoid (remove) any lien on real estate unless Client(s) specifically authorizes the Attorney to do so in writing and the lien avoidance is permissible under the Bankruptcy Code. Client(s) agrees that the Attorney will rely on Client(s)’s statements concerning ownership of real property and any liens attached to Client(s)’s real property. Client(s) agrees that no real estate title search will be conducted. Client(s) agrees that Attorney will not conduct a public records search for lawsuits filed against Client(s) or judgments granted against Client(s). Client(s) must separately order and pay for a real estate title search, or public records search for lawsuits or judgments, if Client(s)s wishes to obtain one. Client(s) agrees to hold the Attorney harmless if Client(s) later discovers liens, lawsuits or judgments against Client(s) or against Client(s)s real estate.
(b)Litigation concerning violations of the automatic stay or co-debtor stay.
(c)Litigation concerning violations of the post-discharge injunction.
(d)Litigation concerning violations of the plan or terms thereof.
(e)The defense of all adversary proceedings filed by a creditor against you including but not limited to an action to declare a debt non-dischargeable.
(f)Conversion to another chapter of the Bankruptcy Code.
(g)Any appeals from a decision of the Bankruptcy Court.
(h)Any other matter not listed in Section (A)(4) above, but which will assist in completing your case, such as reopening a case to file omitted documents.
Prior to being provided with these services, you will need to sign an additional agreement with Attorney which will be consistent with the terms below. Otherwise, Attorney will not be representing you in these actions.
2.Description of additional fees
Attorney will be entitled to the higher of either the total of their hourly legal fees (set forth below) or a contingency fee equal to 50% of any actual recovery from any party from an action brought against a creditor for violation of the automatic stay, the co-debtor stay, the automatic stay, the discharge injunction, the Bankruptcy Code, the Bankruptcy Rules, or local Court rules or procedure, and for a creditor’s breach of the plan or any terms thereof.
The contingency fee shall be calculated as follows:
(a)All costs, legal fees and damages shall be added together to reach a total settlement amount;
(b) All litigation and other related expenses shall then be deducted from the total settlement amount;
(c)The balance of the total settlement amount shall then be divided between you and Attorney;
(d)You shall be liable for any litigation and other related expenses incurred if there is no recovery;
(e)Upon conclusion of the matter, Attorney shall provide you with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to you and the method of its determination consistent herewith; and,
(f)That your portion of the recovery (or a portion thereof) may be required to be turned over to the Trustee for distribution to your creditors. Attorney will attempt to maximize your personal recovery in every case.
The hourly fee is calculated as follows:
$350.00 per hour for ______
$250.00 per hour for any other attorney working on the file
$125.00 per hour for any paralegal work
$25.00 per hour for any clerk work
These attorney’s fees will be billed in increments of one-tenths (.1) of the hour.
Attorney may, at its discretion, decide to collect on these fees or pursue collection. In a chapter 13 bankruptcy, these non-flat fees may be added to your plan (at the discretion of Attorney) and will be paid through the plan. It is possible that any non-flat fees added to your plan may result in an increase in your monthly plan payment, or in an extension of the length of your plan or both. You agree to cooperate with Attorney and sign an amended plan to pay these fees if necessary. You agree to pay any reasonable attorney’s fees and costs to collect this amount.
Attorney may need an additional fee (retainer) before Attorney will represent you in these actions. This retainer fee will vary depending on the factual and legal circumstances. If Attorney is retained, it will keep time and expense records and deduct same from your retainer. Furthermore Attorney will apply to the Court for the approval of the fee plus all expenses incurred.
C.Attorney is not representing Client(s) in any matters outside of the bankruptcy court.
Client(s) acknowledges that Attorney does not represent Client(s) in any other type of case including but not limited to any foreclosure proceeding or lawsuits other than Client(s)s current bankruptcy case. The Attorney may make a special appearance in a court, other than the Bankruptcy Court, for the purpose of filing a notification of Client(s)s bankruptcy proceedings, and to suggest to another court that Client(s)s proceedings should be stayed. Sending or receiving any summons or complaint, or notifying the Attorney of a pending lawsuit does not obligate the Attorney to represent Client(s) in that lawsuit or before that court. Any representation of Client(s) in a state court proceeding, including without limitation: collection lawsuits, foreclosure lawsuits, and etc., is not included in this Bankruptcy Retainer Agreement. Any referral made to another Attorney to represent Client(s) is a courtesy only. The Attorney is not associated with any other Attorney outside of the undersigned Attorney’s law offices.
D.Court Approval of Fees.
All fees included in this Agreement are subject to the control and approval of the United States Bankruptcy Court.
E.Assumptions for the entire Fee structure disclosed above.
These fees are based on the following assumptions:
(a)That you provide Attorney with all requested information.
(b) That you provide Attorney with complete and accurate information.
(c) That your circumstances, especially your current monthly income (as defined by the Bankruptcy Code) do not substantially change prior to the filing of the case.
(d)That you provide all requested documents within 15 days of the date of this Agreement.
F.Your Obligations.
Your obligations are as follows:
(a)Upon request, to provide Attorney with all requested documents, bills, statements, payment advices, bank records, tax returns, tax bills, appraisals, retirement and savings account statements, evidence of income, and any other relevant and necessary information or documents.