Los Angeles, CA asked in Bankruptcy for California

Q: What is an order on application for supplemental fees in a Chapter 13 bankruptcy? I'm the debtor,do I have to pay extra?

The form says "That the sum of $750 is allowed Applicant as compensation for extraordinary services referred to in the Application and the chapter 13 trustee is directed to pay the unpaid balance of $750 from the estate of the Debtor as funds permit.

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1 Lawyer Answer
R. Grace Rodriguez
R. Grace Rodriguez
  • Bankruptcy Lawyer
  • Chatsworth, CA
  • Licensed in California

A: You just might. In a normal chapter 13 bankruptcy, your repayment plan may provided for you to pay a percentage to unsecured creditors. If your attorney does extra work in your bankruptcy after it has been confirmed, the court may give such an order. It is possible that the percentage that will be paid back to your unsecured creditors will be reduced to accomodate this extra payment to your attorney. However, if you do not have extra money available in your plan, you will come to the final days of repayment and discovery you don't have enough money paid into your plan to earn your discharge. This is an all too common experience when attorneys submit extra fee applications in a Chapter 13 Bankruptcy.

Make an appointment to sit down with your attorney and ask what will be the effect of this order on your Plan and will it cause your plan to not have enough money later. This way you can make a decision as to whether you want to increase your plan payments to cover these extra fees so you don't risk your bankruptcy failing when you come to the end of the plan.

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