Applications for Compensation in Chapter 13 Cases

U.S. Bankruptcy Court for the Eastern District of Pennsylvania

Rule Set: Local Bankruptcy Rules of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania

Rule: 2016-3

Jurisdiction: EDPAB

Bluebook Citation: Bankr. E.D. Pa. L.R. Adm. R. 2016-3

(a) Application for Compensation for Services Rendered Before Confirmation. Counsel for a chapter 13 debtor may apply for compensation under either subdivision (1), (2) or (3) below. -20- (1) Short Form Application. Counsel for a chapter 13 debtor may file a short form application that conforms substantially to L.B.F. 2016-3A if the services were rendered: (A) for a chapter 13 debtor with above - median income (the amount on line 15b of Official Form B122C-1 is not less than the amount on line 16c) and counsel will receive total compensation of $6,633(*) or less for all services rendered before confirmation; or (B) for a chapter 13 debtor with below - median income (the amount on line 15b of Official Form B122C-1 is less than the amount on line 16c) and counsel will receive total compensation of $5,335(*) or less for all services rendered before confirmation. (2) Application through the Chapter 13 Plan.

Counsel for a chapter 13 debtor may elect to receive compensation without filing an application under subdivision (a)(1), subject to the following provisions: (A) for a chapter 13 debtor with above - median income (the amount on line 15 of Form 122C-1 is not less than the amount on line 16) and counsel will receive total compensation of $6,633(*) or less for all services rendered before confirmation, or (B) for a chapter 13 debtor with below - median income (the amount on line 15 of Form 122C-1 is less than the amount on line 16) and counsel will receive total compensation of $5,335(*) or less for all services rendered before confirmation, and (C) Debtor’s counsel states in Section 2(f) of the chapter 13 plan (L.B.F. 3015.1) that the counsel is seeking court approval of the compensation authorized by L.B.R. 2016-3(a)(2). (3) Long Form Application. If counsel for a chapter 13 debtor is not authorized under subdivision (a)(1) to file a short form application for services rendered before confirmation, counsel shall file a long form application that conforms substantially to L.B.F. 2016-3B. (4) Initial Attorney Fee Applications.

Applications for attorney fees to be paid through a Chapter 13 plan must be filed within six (6) months of the plan confirmation date. If not filed within this period, the Trustee may file a certification of non-compliance with Local Rule 2016-3(a). Upon receiving this certification, the Court will issue a 28-day Order to Show Cause why the requested fee should not be adjusted. If the application is not filed before the 28-day deadline, the Court may: -21- (A) Reduce the fee to the current no-look fee, minus any amounts paid by the debtor prior to filing and direct that any difference—after subtracting pre-petition payments—is to be distributed pro-rata to unsecured creditors or returned to the debtor if creditors have been paid in full; or If the plan-approved fee is less than the current no-look fee, (B) approve the amount listed in Part 3 of Chapter 13 Plan.

(b) Application for Compensation for Services Rendered After Confirmation. (1) Supplemental Fee Application. If counsel for a chapter 13 debtor renders services after confirmation and seeks compensation payable by the chapter 13 trustee, counsel shall file a supplemental application that conforms substantially to L.B.F. 2016-3C. (2) Deadline for Supplemental Fee Applications.

Supplemental applications for counsel fees to be paid through the chapter 13 plan must be filed within 30 days after entry of an order approving a modified plan, provided the fees sought have not been previously approved. (A) If the application is not filed within this timeframe, the Trustee may file a certification of non-compliance with Local Rule 2016-3(b). (B) Upon receiving such certification, the Court will issue a 28-day Order to Show Cause why the requested fee should not be reduced to $250.00 for failure to file timely. If the application remains unfiled after the 28-day period, the Court may reduce the fee to $250.00 and order that any excess amount provided for in the modified plan is be distributed pro-rata to unsecured creditors or returned to the debtor if creditors have been paid in full.

(c) Periodic Adjustments. The dollar amounts in effect under subdivisions (a)(1) and (a)(2) of this rule shall adjust automatically beginning in April of 2028 in the same percentage and on the same effective date as the adjustments made and published by the Judicial Conference of the United States under 11 U.S.C. § 104, rounded to the nearest $25. Adjustments under this subdivision do not apply to cases commenced before the effective date of an automatic adjustment. The Clerk shall publish a notice of the adjustment on the Court’s website. * As adjusted under 11 U.S.C. §104, effective April 1, 2025.

To be readjusted effective April 1, 2028.

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