Local Form 3 July 2009 Debtor(s) DISCLOSURE TO DEBTOR(S) OF ATTORNEYS FEE PROCEDURE FOR CHAPTER 13 CASES IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA After consultation with the undersigned attorney, you have decided to file a petition for relief under Chapter 13 of the United States Bankruptcy Code. Accordingly, you are hereby given notice that pursuant to the local rules of the Bankruptcy Court, the base fee for a Chapter 13 case is established at $ . Payment of all or part of this fee is included in your payments to the Trustee. The attorney's services included in the base fee are those normally contemplated in a Chapter 13 case. They are as follows: (a) (b) (c) (d) (e) Providing the pre-filing notices required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Preparation and filing of your petition, schedules, supplemental local forms, Chapter 13 Plan, and mailing matrix. Drafting and mailing notice to creditors advising of filing of case, including a copy of your Chapter 13 Plan. Drafting and mailing to you a letter regarding your attendance at the Section 341 meeting and your other responsibilities. Preparation for and attendance at Section 341 meeting. (f) (g) (h) (i) (j) (k) (l) Review of order confirming plan and periodic reports. Review of Trustee’s report of allowance of claims. Maintaining custody and control of case files. Service of orders on all affected parties. Verification of your identity and social security number Defending objections to confirmation of your Chapter 13 Plan filed by the Trustee. Preparing and filing Local Form 8 and Local Form 9. The base fee shall also include the following services to the extent they are requested or reasonably necessary for your effective representation: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Preparation and filing of proofs of claim on your behalf for your creditors. Drafting and filing objections to scheduled and unscheduled proofs of claim. Assumptions and rejections of unexpired leases and executory contracts. Preparation for and attendance at valuation hearings. Motions to transfer venue. Consultation with you regarding obtaining postpetition credit (no motion filed). Motions to avoid liens. Calculation of plan payment modifications (no motion filed). Responding to written creditor contacts regarding plan terms, valuation of collateral, claim amounts, and the like. Responding to your contacts regarding changes in your financial and personal (k) (l) (m) (n) (o) (p) (q) (r) circumstances and advising the Court and the Trustee of the same. Communicating with you regarding payment defaults, insurance coverage, credit disability, and the like. Obtaining and providing the Trustee with copies of documents relating to lien perfection issues. Notifying creditors of entry of discharge. Notifying creditors by certified mail of alleged violations of the automatic stay. Drafting and mailing letters regarding voluntary turnover of property. Defense of objection to confirmation filed by any party other than the Trustee. Review of documents in relation to the use or sale of collateral (no motion filed). Providing you with a list of answers to frequently asked questions and other routine communications with you. American LegalNet, Inc. www.FormsWorkFlow.com In some Chapter 13 cases, legal services which are beyond those normally contemplated must be performed. These legal services are not covered by the base fee. These "non-base" services include the following: (a) (b) (c) (d) (e) (f) (g) (h) Abandonment of property postconfirmation. Motion for moratorium. Motion for authority to sell property. Motion to modify plan. Motion to use cash collateral or to incur debt. Defense of motion for relief from stay or co-debtor stay. Defense of motion to dismiss filed after confirmation of your plan. Non-base fee requests. (i) (j) (k) (l) (m) (n) (o) (p) Stay violation litigation, including amounts paid as fees by the creditor or other party. Post-discharge injunction actions. Adversary proceedings. Wage garnishment orders. Turnover adversaries. Conversion to Chapter 7. Motions to substitute collateral. Any other matter not covered by the base fee. For such "non-base" services you will be charged on the basis of attorney's time expended at the rate of $ per hour plus the amount of expenses incurred (such as court fees, travel, long distance telephone, photocopying, postage, etc.). Such "non-base" fees are chargeable only after the same are approved by the Bankruptcy Court. Except as set forth below, before any such fees are charged you will receive a copy of my motion filed in the Court requesting approval of any such "nonbase" fees as well as a notice explaining your opportunity to object if you do not agree with the fee applied for. Any fees awarded for "non-base" services will be paid to the undersigned attorney from your payments to the Trustee in the same way as payment of "base" fees. It is possible that "non-base" fees approved by the Court may cause your payment to the Trustee to be increased, or the term of your Chapter 13 plan extended. Whether or not a payment increase or an extension will be necessary depends upon the facts of your case. If a payment increase is necessary because of a court- approved "non-base" fee, the Trustee will notify you of the amount of the increase. In the Court's discretion, a debtor's attorney in a Chapter 13 proceeding may request, in open court, and without any other notice, "non-base" fees for the following services in amounts not exceeding those shown below. Without other notice, the debtor's attorney may also request up to $1.00 for each item noticed to creditors as expense for postage, copying, and envelopes. These fees may be adjusted (increased) by the Court at a later date, and, if so, those adjusted fees will then be charged. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Defense of motion to dismiss Motion to modify and order, including motion for moratorium Substitution of collateral Prosecution or defense of motion for relief from stay or co-debtor stay and order Motion for authority to sell property and order Motion to obtain credit Permission from trustee to obtain credit, to be filed as an administrative proof of claim Motion to continue or impose the automatic stay When substitute legal counsel is retained by a Chapter 13 debtor, such substituted counsel is entitled to a presumptive base fee of $500 without formal application to the Court, provided that the order allowing substitute counsel specifies both the amount of the fee and whether the fee is paid direct by the debtor or through the plan. Objection to proof of claim of Real Property Creditor Consent to an amended proof of claim in lieu of an objection to a motion to modify stay or to an amended proof of claim where the debtor has failed to pay postpetition payments Motion to incur debt related to the approval of a loan modification with a real property creditor Motion to declare mortgage current $200 $350 $450 $450 $450 $450 $200 $350 $450 $450 $450 $450 2 American LegalNet, Inc. www.FormsWorkFlow.com ACKNOWLEDGMENT I hereby certify that I have read this notice and that I have received a copy of this notice. Dated: Debtor's Signature Dated: Spouse's Signature I hereby certify that I have reviewed this notice with the debtor(s) and that the debtor(s) have received a copy of this notice. Dated: Attorney 3 American LegalNet, Inc. www.FormsWorkFlow.com 4 American LegalNet, Inc. www.FormsWorkFlow.com