Jerry Hewitt

0:05-bk-90309MdbJun 6, 2006

Full text

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
JERRY HEWITT : Case No. 05-90309PM
: Chapter 13
Debtor :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
MEMORANDUM OF DECISION
Before the court is the Trustee’s Limited Objection to Attorney’s Fees sought by counsel
for the Debtor in the sum of $3,711.00. The matter came before the court for hearing on May 9,
2006, and the court is grateful to counsel for the Debtor and the Chapter 13 Trustee for the
thorough discussion of the factors involved and their candor in their presentations. The court has
also had the benefit of discussions of the issues presented at the 18th Annual CLE Program of the
Bankruptcy Bar Association for the District of Maryland.
Section 329(b) of the Bankruptcy Code mandates, in every case, that this court make a
determination of the reasonable value of services rendered to the debtor in cases under Chapter 13.
It is often difficult at the beginning of a case to predict what additional services will be required
of the debtor’s counsel besides taking the debtor through the confirmation process, although
some matters are easily ascertainable, such as, the need to marshal records and file motions to
avoid various liens. With the enactment of the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005, there was some initial uncertainty as to the amount of additional work
imposed upon debtor’s counsel. Through the experience obtained in the passage of time since
the enactment of the Act, attorneys and professionals now have a better handle on the amount of
effort involved.
Signed: June 05, 2006
SO ORDERED
Entered: June 06, 2006 Case 05-90309 Doc 43 Filed 06/06/06 Page 1 of 2
In the instant case, counsel did not assume the risk of performing uncompensated legal
tasks. He expressly excepted from the scope of his representation such matters as objections to
claims or defense of actions seeking relief from the stay. While he agreed to remain as counsel
of record in the case for the duration of the Plan, this is a hollow undertaking, because he would
require additional compensation for post-confirmation activity.
Finally, the court must look at the impact of administrative expenses upon distributions to
creditors, particularly, unsecured creditors without priority, the parties most impacted by
bankruptcy filings. The confirmed Plan provides for payment of $250.00 a month to the Trustee
for a period of 60 months, a total of $15,000.00, if Debtor is able to consummate the Plan. After
the payment of arrears on secured claims of approximately $6,000.00 and the payment of
administrative costs, including the Trustee’s statutory commission, these unsecured creditors are
left with the remains. In view of all of the circumstances, the court will not allow the
compensation in the full amount sought. Nonetheless, the court will allow substantially more
than it has in the past in similar cases.
An appropriate order will be entered.
cc:
Antonio Aquia, Esq., 220 North Liberty Street, Baltimore, MD 21201
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
Jerry Hewitt, 14933 Kelbaugh Road, Thurmont, MD 21788
End of Memorandum
Case 05-90309 Doc 43 Filed 06/06/06 Page 2 of 2

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