3:24-bk-31827•Timothy Naff and April Naff
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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION In re: Timothy Naff April Naff, Debtors. : : : : : : Case No. 24-31827 Chapter 13 Judge Crist ORDER GRANTING, IN PART, AND DENYING, IN PART, APPLICATION FOR COMPENSATION OF TAX WORKOUT GROUP (DOC. 60) I. Introduction This matter has a somewhat tortured history for what might otherwise have been a routine application for compensation by debtors’ attorney in a chapter 13 case dismissed prior to confirmation.1 After a number of filings and a hearing, the Court now turns back to the Application for Compensation (Doc. 60) (the “TWG Application”), originally filed by Laura M. Nesbitt (“Ms. Nesbitt”) on behalf of Tax Workout Group (“TWG”), counsel for Debtors Timothy Naff and April Naff (the “Debtors”) on June 16, 2025, for attorney fees in the amount of $4,345.50 and expenses in the amount of $392.20. Just one of the complicating issues is that Ms. Nesbitt filed this chapter 13 case on September 23, 2024 on behalf of the Debtors through her our law firm, Nesbitt Law Firm, but on October 7, 2024 she filed a Notice of Substitution of Counsel for Debtors (Doc. 10) 1 These types of applications are governed by Local Bankruptcy Rule (“LBR”) 2016-1(b)(5), not 2016-1(b)(3), as asserted in the TWG Application (as defined above). This document has been electronically entered in the records of the United States Bankruptcy Court for the Southern District of Ohio. IT IS SO ORDERED. Dated: June 11, 2026 Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 1 of 17
2 (the “Notice of Substitution”) to advise that she had joined TWG; however, after filing the TWG Application, she represented in a Joint Status Report (Doc. 72) filed with the United States Trustee that she had left TWG but was still “the attorney of record for the Debtors in this case,” but she took “no position regarding the pending [TWG] Application.” She did not file a notice of withdrawal or substitution of counsel. More importantly, neither she nor TWG filed an application for approval of attorney fees prior to October 7, 2024 for the prepetition and postpetition services that she provided to the Debtors through her law firm, Nesbitt Law Firm, LLC (“NLF”), up until this case transitioned to TWG, even though the Court gave her until February 10, 2026 to do so and warned her that failure to seek approval of those fees would result in having to return the fees. See Order Fixing Deadlines (Doc. 78) (as defined below). Accordingly, the prepetition retainer of $1,687.00 was paid by the Debtors prior to transitioning this case to TWG will now be the subject of a show cause order entered after this Order. However, because neither Ms. Nesbitt nor NLF timely filed an application for approval of fees in accordance with the Court’s prior Order Fixing Deadlines (Doc. 78), it is now clear that the total amount of attorney fees up for approval by this Court in this pre-confirmation dismissed chapter 13 case is as set forth in the TWG Application; meaning that, not including expenses, total potential attorney fees of $4,345.50 are at issue, not $6,032.50. With that issue now sorted, the Court proceeds to rule on the TWG Application. In that regard, there are just a few entries that the Court finds to be excessive and will reduce in this chapter 13 case dismissed prior to confirmation, resulting in a total approved fee of $4,287.00 for the legal services set forth in the TWG Application, and reimbursement of expenses in the voluntarily reduced amount of $243.10, for a combined total of $4,530.10, which may be paid by the Chapter 13 Trustee from the funds he has on-hand. II. Background A. Events Leading Up to and Including the Pre-Confirmation Dismissal Ms. Nesbitt, then with Nesbitt Law Firm, filed the Voluntary Petition (Doc. 1) for the Debtors on September 23, 2024. In conjunction, she certified, pursuant to 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure (“Bankruptcy Rule”) 2016(b), that prior to filing the Disclosure of Compensation of Attorney for Debtor and Application for Allowance of Fees in Chapter 13 Case (Doc. 1 at 53-54) (the “Disclosure”) she had received $1,687.00 from the Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 2 of 17
3 Debtors, she had agreed to accept $4,350.00, and she had “not agreed to share the above-disclosed compensation with any other persons unless they are members and/or associates of my law firm.” Disclosure at 1, § I. The Statement of Financial Affairs (Doc. 1 at 46-52) (the “SOFA”) likewise listed three payments, made by the Debtors in May, June and September, 2024, to the Nesbitt Law Firm totaling $1,687.00 for “Attorney Fee.” SOFA at 4. The Initial Chapter 13 Plan (Doc. 11) was filed on October 7, 2024, the same day as Ms. Nesbitt filed the Notice of Substitution. Although no plan was ever confirmed in this case, it is notable that the Initial Chapter 13 Plan (Doc. 11) provided in paragraph 5.1.7 (Administrative Claims), as did all three Amended Chapter 13 Plans – the First Amended (Doc. 19), the Second Amended (Doc. 32), and the Third Amended (Doc. 49) – that TWG would be paid attorney fees in the total amount of $4,350.00, with $2,663.00 to be disbursed by the Chapter 13 Trustee. See Doc. 11 at 5; Doc. 19 at 5; Doc. 32 at 5; Doc. 49 at 5. When Ms. Nesbitt filed the aforementioned Notice of Substitution, she did not explain whether the Nesbitt Law Firm and TWG had discussed or agreed on what to do about the prepetition retainer of $1,687.00 paid by the Debtors to the Nesbitt Law Firm. On April 21, 2025, the Chapter 13 Trustee filed his Motion to Dismiss for Failure to File a Confirmable Plan and Notice of Hearing (Doc. 52) (the “Motion to Dismiss”), pursuant to 11 U.S.C. § 1307(c)(1), on the basis that, after four tries (during the period from October 7, 2024 to April 4, 2025), “the Debtors have failed to file a confirmable Plan.” There was no response to the Motion to Dismiss; however, in the meantime, following the transfer of this case to the current Bankruptcy Judge for all further proceedings on June 3, 2025, the Court entered a Pre-Confirmation Dismissal Order (Doc. 46) (Doc. 56) (the “Dismissal Order”) on June 9, 2025, based on the Chapter 13 Trustee’s report to the Court that “Debtors failed to make full plan payments during the probationary period” in accordance with the prior Agreed Order Resolving Trustee’s Motion to Dismiss and Placing Debtors on Payment Probation (Doc. 46), entered on March 25, 2025. As a result, the confirmation hearing on the Third Amended Plan (Doc. 49) that had been scheduled for June 12, 2025 was cancelled as moot and the pending Motion to Dismiss likewise became moot. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 3 of 17
4 B. TWG Application Within a week after entry of the Dismissal Order, Ms. Nesbitt, on behalf of TWG, filed an Application for Compensation (Doc. 58); however, she withdrew that application through a Withdrawal of Document #58 (Doc. 59), filed the same day, and replaced it with the TWG Application now before the Court. Both were purportedly filed under LBR 2016-1(b)(3), which applies to “[a]dditional attorney fees for services performed by the debtor’s attorney beyond those set forth in (b)(2)(A) or (b)(2)(C)[,]” which, respectively, concern the “no-look fee” or the no-look fee opt out. Apart from increasing the expenses requested from $94.00 to $392.20, by adding a June 16, 2025 charge of $298.20 for mailing the TWG Application, the two versions of the TWG Application (Docs. 58 and 59) were identical, both requesting total legal fees of $4,345.50, just under the no-look fee amount of $4,350.00 (not counting the expenses sought). See General Order No. 50-1, In re Amending Local Bankruptcy Rule 2016-1 (Bankr. S.D. Ohio Feb. 24, 2021) (increasing the no-look fee from $3,700 to $4,350). With the increased expenses, the total amount sought through the TWG Application was $4,737.70. Attached to the TWG Application is ten-page Invoice # 3988 dated June 16, 2025 (the “TWG Invoice”), on Tax Workout Group letterhead, which is payable to TWG in Boca Raton, Florida. TWG Appl. (Doc. 60) at 4-13. The dates of services in the TWG Invoice begin on October 7, 2024, which is the same day, postpetition, that Ms. Nesbitt filed the Notice of Substitution and the Initial Chapter 13 Plan, and end on June 16, 2025 with preparation of the Invoice. Accordingly, the TWG Application only covers the postpetition period of time during which Ms. Nesbitt was charging for her services through TWG. It does not cover the prepetition period, or from the petition date of September 23, 2024 up through October 6, 2024.2 C. Order Requiring Supplementation (Doc. 63), Ms. Nesbitt’s First Supplement (Doc. 65), and the Chapter 13 Trustee’s Report and Amended Certification (Docs. 66 and 67) On August 6, 2025, the Court entered an Order Requiring Supplementation of Debtors’ Counsel’s Application for Compensation (Doc. 60) and a Report from the Chapter 13 Trustee 2 As a side note, neither the Invoice itself nor the TWG Application contain a description or key such that the Court could decipher the initials of the professionals providing the services or know their full names, education, title, or experience, except to guess that “LN” stands for Laura Nesbitt. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 4 of 17
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(Doc. 63) (the “Order Requiring Supplementation”), in which the Court recounted the basics of
the TWG Application, noted that it was actually governed by LBR 2016-1(b)(5)(A), and flagged
a discrepancy with the Certification of Final Payment and Case History in a Dismissed by Court
Before Confirmation Case (Doc. 62) (the “Certification of Final Payment”) filed by the Chapter
13 Trustee, and posed a series of questions concerning the TWG Application for Ms. Nesbitt to
address by way of filing a supplement to the TWG Application, for which a deadline of August
21, 2025 was set.
On August 22, 2025, one day after the deadline, Ms. Nesbitt filed the Supplementation of
Debtors’ Counsel to Application for Compensation (Doc. 60) (Doc. 65) (the “First Supplement”).
Therein, she explained, as it concerns the services provided before she filed her Notice of
Substitution on October 7, 2024 (before the first day of services on the Invoice attached to the
TWG Application):
In this case, the substitution of counsel was filed on October 7, 2024 (Doc.
10). Prior to the transition and case transfer, [Nesbitt Law Firm, LLC (“NLF”)] had
performed work for and billed the client through NLF. Therefore, by the time the
case had transitioned from NLF to TWG, substantial work had been performed, and
legal fees had been earned and paid to NLF under the agreement between Debtor
and NLF. An attached itemized invoice ("Exhibit. A") of services is included from
NLF showing services rendered in the amount totaling $1,950.00. These services
are more than the portion of the no-look fee collected by NLF prior to filing, in the
amount of $1,687.00, as disclosed in the original attorney compensation statement
filed with the original petition. NLF did not request additional fees from the
Debtors, nor from the Chapter 13 Estate, and does not intend to collect the amount
of fees earned in excess of those already paid to NLF in this matter.
First Supplement at 2. Invoice # 1082, on The Nesbitt Law Firm, LLC letterhead, dated August
21, 2025 (the “NLF Invoice”) was attached as Exhibit A. (Doc. 65-1.) It has a DRAFT stamp on
the first page, covers the period from August 10, 2023 through September 27, 2024, with the bulk
of the work occurring from April 5, 2024, up to and including a few days after the petition date of
September 23, 2024. See NLF Invoice (Doc. 65-1) at 1-2. The NLF Invoice, on page 3, explains
that “LN” stands for Attorney Laura Nesbitt and “ED” stands for Paralegal Erin Duwel. The NLF
Invoice, however, does not reflect any payments and, confusingly, identifies both a $1,950.00 total
for the NLF Invoice and an “Outstanding Balance Total” of $4,613.
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Document Page 5 of 176 Also in the First Supplement, Ms. Nesbitt provided explanations in response to the specific questions and issues raised by the Court in its Order Requiring Supplementation, which are, in part, as follows: 3) As noted above, the application lists three professionals other than Ms. Nesbitt, but they are only identified by their initials, ED (at $145/hr.), AH ($125/hr.)3, and AK ($545/hr.). The Application does not list the names of the professionals, their Case 3:24-bk-31827 Doc 65 Filed 08/22/25 Entered 08/22/25 00:43:23 Desc Main Document Page 2 of 4 3 experience level, or attorney and paralegal qualifications or certifications (if any). The Application also does not list Ms. Nesbitt’s experience level, such as date of first bar admission. See LBR 2016-1(b)(5)(A) (requiring identification of “any attorney, paralegal, or other professional person for whom fees are sought”). See also 11 U.S.C. § 330(a)(3)(E) (listing, as a relevant factor, the experience level and skill of professionals “in the bankruptcy field” as relevant for what is “reasonable compensation”). Response: A) LN: Attorney Laura Nesbitt was admitted to practice law in the State of Ohio in November 2007. She has focused her law practice on consumer bankruptcy work since March of 2009. She is admitted in good standing in the State of Ohio, as well as the Southern District of Ohio and the Northern District of Ohio. B) AK: Attorney Andrew Kamensky was admitted to practice law in the State of Florida in October 1997, State of New York in October 2011, State of Georgia in June 2023, and State of Ohio (practice pending admission 2025 – Bar No. 105467). He has focused his law practice in bankruptcy work for 28 years. He is admitted in good standing in each of the above-mentioned jurisdictions, and several district and bankruptcy courts in those and other states. C) ED: Paralegal Erin Duwel is a paralegal who has worked almost exclusively on consumer bankruptcy matters for over 20 years. D) AH: Paralegal Amber Holmes is a paralegal who began employment at Tax Workout Group, PA in December 2024. Prior to that she had over 10 years of consumer bankruptcy paralegal experience. The correct hourly is $125. First Suppl. at 2-3 (bold type removed). On September 2, 2025, the Chapter 13 Trustee filed his Report to Court RE: Order Requiring Supplementation of Debtors’ Counsel’s Application for Compensation and a Report 3 The Court notes that in two instances AH is listed with a rate of $145/hr., such that these entries will be reduced to the appropriate rate of $125/hr. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 6 of 17
7 from the Chapter 13 Trustee (Doc. 63) (Doc. 66) (the “Trustee’s Report”), explaining that the prior Certification of Final Payment contained an error by double-counting the $1,687.00 prepetition payment and thereby increasing the overall amount of attorney fees from $4,350 with $2,663 remaining due to $6,037 (an increase of $1,687) with $2,663 remaining due. The Trustee’s Report explained that the Certification of Final Payment should have stated that “The debtors’ attorney was allowed $4,350 and was paid $1,687.” Tr.’s Report at 1. The Trustee’s Report also confirmed that no monies were disbursed “to Ms. Nesbitt through the Chapter 13 Plan.” Id. Further, it clarified that “the Trustee [wa]s holding $10,246.32 pending determination of this matter.” Id. at 1-2. On September 3, 2025, the Chapter 13 Trustee filed his Amended Certification of Final Payment and Case History in a Dismissed by Court Before Confirmation Case (Doc. 62) (Doc. 67) (the “Amended Certification of Final Payment”), in which he made the amended disclosure that “debtor(s)’ attorney requested fees in the Plan of $2,663 and was paid $0.00 through the Plan” and that “[r]efunds to the debtor(s) and/or new trustee total $10,246.32.” Am. Cert. at 6. This did not match up with what the Trustee’s Report had said the Certification of Final Payment should say, but at least it identified the correct delta between the approximate total amount of fees sought by TWG based on its TWG Invoice, in comparison to what was paid prepetition to NLF for the pre- and postpetition services itemized in the NLF Invoice. D. The U.S. Trustee’s Objection (Doc. 68) As permitted by the Order Requiring Supplementation, on September 4, 2024, the United States Trustee for Region 9 (the “U.S. Trustee”) filed his Limited Objection to Application for Compensation (Doc. No. 60) and Supplementation (Doc. No. 65) (Doc. 68) (the “Limited Objection”), which noted, in part, that: 7. The compensation from funds held by the trustee appears to be in addition to the $1,687 already paid to attorney Nesbitt by Debtors, putting the total compensation ask at $6,424.70. (Doc. 60, p. 1, ¶1 “This request for fees is . . . in addition to those services that do not require itemization,” referencing the “no-look” amount in LBR 2016-1). * * * 25. The record as it currently exists fails to provide facts sufficient to determine the reasonableness of the request, and consistent with applicable law, the request should be denied. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 7 of 17
8 WHEREFORE, the United States Trustee requests that this Court sustain his limited objection, deny or reduce the requested June 16, 2025 expenses, deny additional compensation, and for such additional relief as this Court determines is appropriate under the circumstances. E. Ms. Nesbitt’s Second Supplement (Doc. 69) On September 8, 2025, Ms. Nesbitt filed the Second Supplementation of Debtors’ Counsel to Application for Compensation (Doc. 60) (Doc. 69) (the “Second Supplement”), which solely concerned the questioned additional June 16, 2025 expense for mailing the TWG Application through EDEXIS, which, as the Court had previously calculated, was charged at $4.20 per mailing, times 71 mailings, for a total charge of $298.20. See Order Requiring Suppl. at 3, ¶ 4; Second Suppl. at 1. This was much more than double the expense of $94.00 charged for Ms. Nesbitt’s prior mailing of the Initial Chapter 13 Plan. See TWG Inv. at 9. F. Order Requiring Status Report (Doc. 70), Joint Status Report (Doc. 72) and Notice of Appearance (Doc. 73) On October 8, 2025, this Court entered an Order Requiring Status Report(s) with Regard to Debtor Counsel’s Application for Compensation (Doc. 60) and the United States Trustee’s Limited Objection to Application for Compensation (Doc. 68) (Doc. 70), setting a deadline of November 7, 2025 for a joint or individual status reports. In response, the U.S. Trustee and Ms. Nesbitt filed the Joint Status Report Regarding the Contested Matter (Docket No. 70) (Doc. 72) (the “Joint Status Report”) on October 28, 2025, in which they disclosed that “Tax Workout Group terminated Attorney Nesbitt’s employment” and therefore “while Attorney Nesbitt remains the attorney of record for the Debtors in this case, she no longer represents Tax Workout Group in the Contested Matter and takes no position regarding the pending Application.” Joint Status Report at 1. Moreover, at that point “[t]he United States Trustee [wa]s unable to determine who (if anyone) [wa]s representing Tax Workout Group in the Contested Matter” and the U.S. Trustee further reported that its Limited Objection was unresolved and suggested that a hearing be scheduled. Id. Shortly thereafter, Attorney Sean Stone with TWG entered his appearance through the Notice of Appearance and Request for Notices (Doc. 73), filed on November 4, 2025. Ms. Nesbitt, however, did not withdraw and no substitution of counsel was filed. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 8 of 17
9 G. Order Setting Hearing (Doc. 74), Exhibit List (Doc. 76), Proposed Agreed Order, Hearing, and Order Fixing Deadlines (Doc. 78) As a result of the Joint Status Report, the Court scheduled an evidentiary hearing on the TWG Application, the First Supplement, the Certification of Final Payment, the Trustee’s Report, the Amended Certification of Final Payment, the Limited Objection, and the Second Supplement for December 18, 2025, with a deadline of December 11, 2025 for witness and exhibit lists and any additional memorandum of law, through the Order Setting Hearing on Debtor Counsel's Application for Compensation (Doc. 60), the United States Trustee’s Limited Objection to Application for Compensation (Doc. 68), and the Joint Status Report to Court (Doc. 72). (Doc. 74) (the “Order Setting Hearing”). On December 11, 2025, new counsel for the Debtors, Mr. Stone, filed the Exhibit List (Doc. 76) with Debtors’ Exhibits 1 through 9 attached thereto, which included the Debtors’ payment history, an email and various documents concerning the June 16, 2025 mailing expense, and the TWG Application. Prior to the hearing held on December 18, 2025, Debtors’ Counsel and Counsel for the United States Trustee submitted a proposed Agreed Order Granting Application for Compensation (Rel. Doc. No. 60) to the Court, by which the parties had agreed to resolve the Limited Objection (Doc. 68) by reducing the mailing expenses requested in the TWG Application of $392.20 by $149.10, such that TWG would be awarded compensation in the amount of $4,345.50 and reimbursement of expenses in the amount of $243.10, for a total award of $4,588.60. The Court held the hearing on the TWG Application, and the various related filings identified in the Order Setting Hearing (Doc. 74), on December 18, 2025 at 10:30 a.m. In attendance were Sean Stone with TWG, counsel for the Debtors; Erin Renneker, counsel for the Chapter 13 Trustee; John G. Jansing, the Chapter 13 Trustee; and Nathan A. Wheatley, Counsel for the United States Trustee all attended the hearing in person. Ultimately, the Court determined that it could not rule on the TWG Application because, as stated in the Order Fixing Deadlines (Doc. 78)4 entered after the hearing on January 20, 2026, in addition to other reasons discussed on the record, the First Supplement filed by Ms. Nesbitt on August 22, 2025 had: 4 The full title is the Order Fixing Deadlines: (1) to File Engagement Letter; (2) for Nesbitt Law Firm and Laura M. Nesbitt to File Application to Approve Attorney Fees and Retain Prepetition Retainer; and (3) to File an Agreed Order to Resolve the Pending Application for Compensation (Doc. 60) by Tax Workout Group, and Authorizing, but Not Requiring, the Chapter 13 Trustee to Refund Plan Payments On-Hand to Debtors, Pursuant to 11 U.S.C. § 1326(a)(2), Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 9 of 17
10 revealed that the Nesbitt Law Firm (“NLF”) and Ms. Nesbitt had been paid a prepetition retainer of $1,687 for total attorney fees of $1,950, that appears to be in addition to the attorney fees for which approval was sought in the TWG Application, and NLF and Ms. Nesbitt have not moved for approval of those fees . . . . Order Fixing Deadlines (Doc. 78) at 2. Accordingly, the Court thereby ordered, amongst other things, as follows: 1. Ms. Nesbitt or Debtor’s Counsel shall file with the Court and serve on the Debtors, the Chapter 13 Trustee, the United States Trustee, and the TWG (the “Service Parties”), not later than twenty-one (21) days from the date of entry of this Order, the engagement letter signed by the Debtors on August 10, 2025, for Nesbitt Law Firm (“NLF”) and Attorney Nesbitt to represent the Debtors, which is referenced in the [First] Supplement (Doc. 65 at 2); 2. To the extent that NLF and/or Ms. Nesbitt intend on retaining the prepetition attorney fees paid to her by the Debtors in the amount of $1,687, as previously disclosed (Doc. 1 at 53) and referenced in the [First] Supplement (Doc. 65 at 2), NLF and/or Ms. Nesbitt shall, not later than twenty-one (21) days from the date of entry of this Order, file an appropriate application for approval of compensation and reimbursement of expenses, for the attorney fees reflected in Invoice # 1082, dated August 21, 2025, up to the amount of the prepetition retainer, pursuant to Local Bankruptcy Rule 2016-1(b)(5) and (b)(6) (the “NLF Application”). In the absence of a timely filed and properly served NLF Application, the Court may determine, without further notice, to order all amounts paid by the Debtors directly to Ms. Nesbitt, as a prepetition retainer, to be refunded to the Debtors. 3. To the extent that counsel for the Debtors’, the Chapter 13 Trustee, and the United States Trustee agree upon the resolution of the TWG Application, they shall, not later than twenty-one (21) days from the date of entry of this Order, submit a proposed agreed order to the Court with the terms to resolve the TWG Application, for the Court’s consideration in conjunction with review of any NLF Application. 4. Upon review of all filings and submissions required by this Order, and any responses to any NLF Application, the Court will determine whether a further hearing is necessary or whether all issues have been sufficiently addressed such that the Court can rule on the TWG Application, any NLF Application, and any remaining related issues. Order Fixing Deadlines at 3-4, ¶¶ 1-4. to the Extent the Funds Exceed the Potential Unpaid Claims Under 11 U.S.C. § 503(b) (Doc. 78) (the “Order Fixing Deadlines”). Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 10 of 17
11 The BNC Certificate of Mailing (Doc. 79) reflects that the Order Fixing Deadlines was delivered to Ms. Nesbitt at a variety of email addresses at domains with TWG, BestCase, ecf.courtdrive, and Gmail. H. Post-Order Fixing Deadlines (Doc. 78) The twenty-one (21) day deadline from entry of the Order Fixing Deadlines (Doc. 78) expired on Tuesday, February 10, 2026. Although the “engagement letter signed by the Debtors on August 10, 2025, for [NLF] and Attorney Nesbitt to represent the Debtors, which is referenced in the [First] Supplement (Doc. 65 at 2)” was timely filed on February 4, 2026 (Doc. 80), neither (1) an “appropriate application for approval of compensation and reimbursement of expenses, for the attorney fees reflected in Invoice # 1082, dated August 21, 2025, up to the amount of the prepetition retainer, pursuant to [LBR] 2016-1(b)(5)” for the prepetition amount of $1,687 paid to NLF; or (2) a proposed agreed order between the Debtors, the Chapter 13 Trustee, and the U.S. Trustee to resolve the TWG Application, were filed with or submitted to the Court. In fact, the only two items filed with the Court since entry of the Order Fixing Deadlines have been: (1) the Notice of Filing of Engagement Letter (Doc. 80), filed by Mr. Stone with TWG, to which an Engagement Letter—Bankruptcy Representation between Debtor April Naff and NLF, signed on August 10, 2023 (the “NLF Engagement Letter”), is attached; and (2) the Report to Court (Doc. 81), filed by the Chapter 13 Trustee to advise that refund checks in the amounts of $3,040.42 and $2,567.30, for a total of $5,607.72, were issued to the Debtors on February 10, 2026, such that the Trustee retained a balance on-hand of $4,638.62. The NLF Engagement Letter reflects that back in August of 2023, not 2025, Ms. Naff agreed to pay a base fee of $4,350 for legal services, plus a $313 chapter 13 filing fee – a total of $4,663 – of which $2,000 would be paid prepetition and the remaining $2,663 would be paid “through the Chapter 13 plan or immediately upon . . . dismissal (Chapter 13).” NLF Engagement Ltr. at 1, 3, 6. III. Analysis A. LBR 2016-1(b)(5) Given that no chapter 13 plan was ever confirmed in this dismissed case, LBR 2016-1(b)(3), as cited in the TWG Application and which governs additional attorney fees beyond Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 11 of 17
12 the no-look fee or the no-look fee opt out, does not apply. Instead, the TWG Application is governed by LBR 2016-1(b)(5), which provides as follows: (5) Fees in Cases Dismissed Prior to Confirmation. (A) Attorney Fees. The no-look fee does not apply in cases dismissed prior to confirmation. An attorney seeking payment of fees for services performed, or reimbursement of expenses, in a case dismissed prior to confirmation must file an application that includes an itemization of all legal services performed, the amount of the total fee requested, the amount and itemization of expenses for which reimbursement is sought, the identification and hourly billing rate of any attorney, paralegal, or other professional person for whom fees are sought, and the actual time spent by the attorney, paralegal, or other professional person for whom fees are sought. The fee application in a dismissed case shall be filed no later than twenty-one (21) days after the entry of the order of dismissal. Notwithstanding that the TWG Application cited the wrong provision of LBR 2016-1(b), it was filed within twenty-one days after entry of the Dismissal Order. Further, the Court previously entered the Order Requiring Supplementation (Doc. 63) to request information needed to assess the TWG Application under LBR 2016-1(b)(5) and was provided the helpful First Supplement and Second Supplement from Ms. Nesbitt. Accordingly, the Court does not believe a further hearing is needed, at least not on the TWG Application. B. Only the TWG Application Remains for Consideration The U.S. Trustee, in its Limited Objection, hit on the issue of primary concern to this Court, which is that the TWG Application does not cover or request approval of attorney fees for the legal services provided by Ms. Nesbitt prepetition and postpetition prior to October 7, 2024, for which she was paid the prepetition retainer amount of $1,687, but for which she did not timely file and serve a fee application, under either the deadline set forth in LBR 2016-1(b)(5)(A), as set forth above, or within the deadline of February 10, 2026 that this Court subsequently provided through the Order Fixing Deadlines. Therefore, although it appears the Debtors incurred total attorney fees of $6,032.50 ($4,345.50 + $1,687.00), not including expenses, for this pre-confirmation dismissed chapter 13 case, subject to Court approval, which is a significant amount for a chapter 13 case in which four plans were filed, but none were confirmed, now that the deadline for Ms. Nesbitt to file an appropriate application for compensation pursuant to LBR 2016-1(b)(5)(A) for the services she provided to the Debtors through NLF has passed, only the TWG Application remains for approval. Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 12 of 17
13 The Court will enter a separate show cause order with respect to the prepetition funds paid to NLF, for which no timely fee application has been filed; however, the remaining issue in that regard appears to be the refund of that retainer to the Debtors and not whether any of the remaining funds held by the Chapter 13 Trustee would need to be paid to NLF. Accordingly, the Court will now proceed to rule on the TWG Application. C. The TWG Application As described above, the TWG Application covers services rendered during the postpetition period from October 7, 2024 to June 16, 2025, and states that it seeks additional attorney fees, pursuant to Local Bankruptcy Rule (“LBR”) 2016-1(b)(3), for the legal services performed “in addition to those services that do not require itemization under LBR 2016-1(b)(2)(A) and set forth in LBR-FORM 2016-1(b)(3) [the no look fee;]” however, as discussed above, this is actually an itemized application for fees in a chapter 13 case dismissed prior to confirmation, which is governed by LBR 2016-1(b)(5)(A). In response to this Court’s Order Fixing Deadlines (Doc. 78), the U.S. Trustee filed its Limited Objection (Doc. 68), in which he stated, in relevant parts to the overall reasonableness of the fees charged (when the total fees and expenses were potentially $6,424.705), as follows: 4. The record of the case is not sufficiently developed such that the U.S. Trustee can determine whether the Debtors’ failure to make their preconfirmation plan payments was the result of Debtors’ financial mismanagement or a failure on the part of counsel of record to adequately advise them concerning the feasibility of a Chapter 13 case and plan. 5. Put another way, it is not clear whether Debtors couldn’t make the payments, or whether they concluded payments were futile and simply stopped making payments after three failed attempts to have a plan confirmed. * * * 15. Regarding attorney fees, the record does not contain sufficient facts to determine that the fees requested are reasonable. 16. Ultimately, the Debtors through attorney Nesbitt failed to promulgate a confirmable plan. (Docs. 23, 28, 39) The inability to confirm a plan almost always rests on a multitude of factors, each of which may prove material to a 5 This is the sum of $6,032.50, which was the total potential attorney fees prior to the deadline for NLF to file a fee application ($4,345.50 + $1,687.00 = $6,032.50), plus the total expenses originally sought by TWG in the TWG Application, in the amount of $392.20; so, $6,032.50 + $392.20 = Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 13 of 17
14 reasonableness determination for the purposes of a fee award, but the facts as of the date of this objection do not support a finding that fees are reasonable. However, as noted, prior to the hearing held on December 18, 2025, counsel for the U.S. Trustee and Mr. Stone, as counsel for the Debtor, tendered an Agreed Order Granting Application for Compensation (Rel. Doc. No. 60), which indicated that the U.S. Trustee, based upon the First and Second Supplements, had agreed to approval of the attorney fees sought in the TWG Application, with only the $149.10 reduction in the expenses sought. As this Court has stated before, “[b]ankruptcy courts have an independent duty to monitor and determine the reasonableness of attorney fees related to bankruptcy cases regardless of whether any party objects to the fee application.” In re Spear, 636 B.R. 765, 769 (Bankr. S.D. Ohio 2022) (Humphrey, J.) (citing Cupps & Garrison, LLC v. Rhiel (In re Two Gales, Inc.), 454 B.R. 427, 432-33 (B.A.P. 6th Cir. 2011); In re Busy Beaver Bldg. Ctrs., 19 F.3d 833, 841 (3d Cir. 1994)). “This responsibility serves to guard the integrity of and public trust in the federal bankruptcy courts.” Id. at 769. The reasonableness of attorney fees for the debtor’s attorney in a chapter 13 case, pursuant to 11 U.S.C. § 330(b)(4)(B), is assessed “using the lodestar method.” Id. at 770 (citing In re Boddy, 950 F.2d 334, 337 (6th Cir. 1991)). While the TWG Application is generally appropriate, based on the number of hours expended multiplied by the mostly reasonable hourly rates, and the majority of the fees and expenses sought with respect to these legal services performed postpetition will be awarded as reasonable and necessary, there are specific time entries of concern to the Court that it will disallow as previewed to Mr. Stone at the hearing held on December 18, 2025, as detailed below: 1. December 31, 2024 entry of Paralegal Amber Holmes (AH) for 0.10 hours: As stated in the First Supplement, the correct hourly rate for Ms. Holmes, whose employment with TWG began in December 2024, was $125; thus, this 0.10 entry, which was billed at the rate of $145, shall be reduced by $2.00. 2. February 13, 2025 entry of Paralegal Amber Holmes (AH) for 0.10 hours: As stated in the First Supplement, the correct hourly rate for Ms. Holmes, whose employment with TWG began in December 2024, was $125; thus, Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 14 of 17
15 this 0.10 entry, which was billed at the rate of $145, shall be reduced by $2.00. 3. May 7, 2025 entry of Attorney Andrew Kamensky (AK) for 0.10 hours: “Bankruptcy: Subject: RE: New Voicemail from John G. Jansing (937) 222- 7600 to Laura Nesbitt (Ext. 153) on Wed May 7, 2025 09:41”, billed at $545.00 per hour for a total fee of $54.50. This entry is being denied for several reasons. First, it does not explain what legal service Mr. Kamensky provided. The Court’s best guess is that a voicemail from the Chapter 13 Trustee to Ms. Nesbitt was forwarded to Mr. Kamensky, but for what reason and what he did in response is unknown. Perhaps it was so that Ms. Nesbitt could seek guidance, perhaps in a mentoring role. But that is just a guess and the burden is on the applicant to establish the who, what, when, where and why to justify that this is a reasonable and necessary charge.6 Second, this is the only entry by Mr. Kamensky in the entire case, suggesting that he was not really involved; sometimes referred to as a “transitory professional.”7 Third, the hourly rate charged is far above the range for what even the most experienced consumer bankruptcy practitioners charge in the Dayton, Ohio area, which based on 6 See, e.g., In re Edmondson, No. 22-23059, 2025 Bankr. LEXIS 350, at *11 & n.67 (Bankr. W.D. Tenn. Feb. 14, 2025) (“When a debtor’s attorney submits a fee application with vague entries, courts often disallow those entries because it is impossible to determine what services were provided.” (citing In re Pochron, 2022 Bankr. LEXIS 1041, at *26, 2022 WL 1085459, at *9 (Bankr. S.D. Ohio Apr. 8, 2022) (citing In re Maruko, 160 B.R. 633, 641 (Bankr. S.D. Cal. 1993))). 7 Absent any other time entries, the Court cannot deduce what Mr. Kamensky did with respect to the voicemail from the Chapter 13 Trustee to Ms. Nesbitt on May 7, 2025; whereas the other voicemail by the Chapter 13 Trustee, also to Ms. Nesbitt, appears to have resulted in an entry by one of the other professionals who regularly worked on this case. By analogy to the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under United States Code by Attorneys in Larger Chapter 11 Cases, particularly B.2.e on “transitory professionals,” this is a case of a professional billing very minimal time “with insufficient evidence of benefit to the estate.” 78 Fed. Reg. 116 (June 17, 2013). Moreover, as confirmed by the United States Court of Appeals for the Sixth Circuit, “the text of § 330(a)(3) permits courts to consider factors not listed, including [but certainly not limited to] ‘results obtained.’ ” In re Vill. Apothecary, Inc., 45 F.4th 940, 949 (6th Cir. 2022). Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 15 of 17
16 the Court’s recent experience tops out around $400 an hour.8 For all these reasons, compensation for this time entry is denied. In addition to the foregoing, based on the previous agreement of the Debtor’s counsel, Mr. Stone with TWG, and the U.S. Trustee, and as originally questioned in the Order Requiring Supplementation (Doc. 63), the Court finds it appropriate to reduce the total expenses sought through the TWG Application by $149.10, from $392.20 to $243.10, consistent with the prior analysis that the mailing costs for the TWG Application, at $4.20 per mailing, was excessive and not necessary, as evidenced by the fact of the significantly lower cost to mail the Initial Chapter 13 Plan (Doc. 11) to the same mailing list. IV. Conclusion Accordingly, it is hereby ORDERED that the TWG Application is hereby GRANTED, in part, and DENIED, in part, and the Court awards attorney fees in this chapter 13 case dismissed prior to confirmation to TWG, pursuant to 11 U.S.C. § 330(a)(1)(A), (a)(3) and (a)(4), Fed. R. Bankr. P. 2016(a), and LBR 2016-1(b)(5), in the amount of $4,287.00 for the legal services set forth in the TWG Application, and reimbursement of expenses, voluntarily reduced to $243.10, for a total of $4,530.10, in accordance with the analysis set forth in the governing Sixth Circuit case law,9 and hereby orders that such amount be paid to TWG from the funds on-hand with the Chapter 13 Trustee. IT IS SO ORDERED. Copies to: Default List Plus: Erin Renneker, 409 E. Monument Avenue, Suite 410, Dayton, Ohio 45402 (Counsel for the Chapter 13 Trustee) Edward H. Cahill, 170 North High Street, Suite 200, Columbus, Ohio 43215-2417 (Assistant United States Trustee) 8 See, e.g., In re Henson, 637 B.R. 13, 17 (Bankr. S.D. Ohio) (Humphrey, J.) (comparing hourly rates of consumer bankruptcy attorneys practicing in Dayton and the Southern District of Ohio). Although Mr. West is identified with a billing rate of $450 an hour in the Henson decision, the Court’s recent experience is that he charges $350 an hour. See, e.g., Application for Additional Attorney Fees (LBR 2016-1), In re Horton, Case No. 24-30915 (Bankr. S.D. Ohio July 22, 2025) (Doc. 55). 9 See In re Boddy, 950 F.2d 334, 337 (6th Cir. 1991) (adopting the loadstar approach in fee calculations); In re Village Apothecary, Inc., 45 F.4th 940, 952-53 (6th Cir. 2022) (court can consider “results obtained” in reviewing bankruptcy fees pursuant to 11 U.S.C. § 330(a)(3)); In re Vaughn, 660 B.R. at 849 (holding that Village Apothecary applies to Chapter 13 proceedings). Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 16 of 17
17 Nathan A. Wheatley, 170 North High Street, Suite 200, Columbus, Ohio 43215-2417 (Counsel for the United States Trustee) Case 3:24-bk-31827 Doc 82 Filed 06/11/26 Entered 06/12/26 07:42:06 Desc Main Document Page 17 of 17
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