Valerie Kelly

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
VALERIE KELLY : Case No. 06-10637PM
: Chapter 13
Debtor :
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MEMORANDUM OF DECISION
Before the court is the Motion filed by Debtor’s counsel seeking reconsideration of this
court’s Order entered March 9, 2006, limiting the fee of counsel to $150.00 and directing refund
of funds received in excess of that. Under the Rule 2016(b) Disclosure of Compensation
Statement filed initially by counsel, it was stated that she received $1,000.00 from Debtor on
account with $1,500.00 to be paid under the Chapter 13 Plan. Counsel filed an Amended
2016(b) Statement reflecting that her total fee was to be limited to the $1,318.00 received from
the Debtor. Presumably, $318.00 was received from the Debtor following dismissal of this case
under Chapter 13, as it would have been improper for Debtor’s counsel to receive any further
payment from the Debtor prior to confirmation of her Plan, absent circumstances not present
here.
The case was filed and unsupported by the Statement of Financial Affairs and Schedules.
Six days after filing the case, counsel filed an “Emergency” Motion to Dismiss Chapter 13 Case.
Two days later, counsel filed a Praecipe withdrawing that Motion. Six days following this, a
second “emergency” motion to dismiss the case was filed that was granted by Order of court
entered February 23, 2006. Contemporaneously with the Order dismissing the case, the court
entered an Order directing Sallye A. Higgin, attorney for the Debtor, to justify the fee claimed by
Date signed May 03, 2006
Entered: May 04, 2006 Case 06-10637 Doc 32 Filed 05/04/06 Page 1 of 2

her in the amount of $2,500.00. When no response was filed to that Order within 10 days of its
entry as required, the court issued the Order Limiting Fee of Counsel to $150.00 and directing the
refund of all funds in excess to the Debtor. Counsel filed a timely request for hearing on that
Order, together with an itemized bill for services rendered. Essentially, what counsel did was
meet with the Debtor, arrange for pre-filing credit counseling, and notify the attorneys handling
the foreclosure sale on Debtor’s property of the filing of the bankruptcy case. Neither the
required Schedules nor the Statement of Financial Affairs was filed. There was no Meeting of
Creditors attended by Debtor.
In reviewing the time records, the court notes in the first instance that counsel keeps time
in quarter of an hour segments and not in one-tenth of an hour as required by the Compensation
Guidelines of this court. In addition, the court notes counsel charged the Debtor for participating
in the credit counseling session. This is not a good practice, and Debtor obtains no benefit from
the insinuation of counsel into the process. The court is hard pressed to find much benefit, if any,
to the work done by counsel on behalf of the Debtor. The court finds that spending two hours for
an initial meeting in anticipation of filing a petition with a list of five creditors is extraordinary.
An appropriate order will be entered.
cc:
Sallye A. Higgin, Esq., P.O. Box 1775, Hyattsville, MD 20788
Valerie Kelly, 4820 Newman Road, Temple Hills, MD 20848
Nancy S. Grigsby, Trustee, P.O. Box 958, Bowie, MD 20718
United States Trustee, 6305 Ivy Lane, #600, Greenbelt MD 20770
End of Memorandum
Case 06-10637 Doc 32 Filed 05/04/06 Page 2 of 2