Legal Question in Bankruptcy in North Carolina

Attorney's Fees

Hi, a computer training school that I was going to closed down and filed for Chapter 7 Bankruptcy. I put in a claim hoping to get some of my money back ($10,000+/school loan), but today I got a letter from the Attorney for the Trustee saying that they filed an Application for Interim Compensation and Reimbursement of Expenses and they are requesting fees and expenses totaling $6,346.25. Also on the letter is states that if I do not want the court to allow The Application for Attorney's Fees, then I must file a written response that complies with local Bankruptcy Rule 9013-1. I really don't comprehend what is going on. Do I write a letter to the court and ask them not to allow the attorney's fees? And if I do, will I not be able to make a claim anymore? Please help. Thank you.


Asked on 6/23/03, 6:58 pm

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Attorney's Fees

The trustee's attorney is seeking fees from the bankruptcy estate, not from you. This may reduce the amount going to creditors by probably a small amount in the grand scheme of things, and if you have any real objection to the amounts being billed, you can object, but there is probably no good reason to waste your time doing so. The U.S. Trustee's office reviews fee applications, as does the judge, so if a fee is not reasonable it will not be allowed.

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Answered on 6/23/03, 7:05 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Attorney's Fees

The attorney's fee is moderated by the court. More important is filing any claim that you may have against the bankrupt estate. This is what a Rule 9013-1 notice is about.

Basically the court is asking whether you have a claim and if so then you must properly file it. Your claim may include unperformed servives and other lacking consideration due under your contract for services. Be aware that others stand in priority to you in the bankruptcy priorities but you may recover by filing a proper claim. You should consider contacting an attorney to draft a motion in your behalf. Feel free to contact me for a free discusssion at (410) 799-9002.

Look to transfer the credits you earned at the educational institution so that you may acquire certification. Do not let this stop you from your career ambition.

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Answered on 6/23/03, 9:52 pm


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