November 30, 2015[redacted]Dispute Resolution SpecialistRevdex.com2800 Euclid Avenue, 4th floorCleveland, Ohio 44115-7678Re: [redacted]: It sadness me greatly to learn that a client has contacted you expressing discontent with...
my representation of her in her Chapter 13 bankruptcy.Unfortunately, this client made the mistake of reading a few things on the internet and believing that she understood far more about bankruptcy law than she could possibly understand. A Chapter 13 bankruptcy is a long and complicated process. She was in the process of a short sale on her house in [redacted] when she came to see me. I explained throughout the process that any assets owned at the time of the filing of a bankruptcy become part of the bankruptcy estate. Therefore, she cannot complete the sale without approval from the bankruptcy judge, which takes time. That upset her greatly. That is the law. A motion must be file with the court, time must be given for creditors or the trustee to respond and then it is set for hearing. These motions are fairly routinely granted, but they take time. These requirements are part of the bankruptcy code. It is unfortunate that this client did not understand that clearly from the beginning of our relationship. If I was unclear in any way, I will certainly attempt greater clarity in the future, but I cannot remove the requirement.As far as what her monthly Chapter 13 plan payment will be, I always explain that the plan we submit when the petition is filed is a proposal and that the trustee nearly always wants something changed and the confirmed plan is a negotiated compromise. There were no “miscalculations.” I don’t know what her final plan payment is going to be and neither does she at this point. It may be higher than our original proposal and it may not. I also explained that nothing would be decided without her understanding and approval. Her case was NOT “scheduled to be dismissed.”Attorney fees should be clearly explained: The standard attorney fee for a Chapter 13 in [redacted] is $4000, $800 of which is paid prior to filing, and $3200 is paid over the length of the plan out of the plan payments that the debtor sends to the trustee. The filing fee is $310. That sum, when received from a client is deposited into the firm’s IOLTA account and paid directly to the court from that account. So the only fees I have received for services rendered were $800. For that fee, I spent 1.5 hours with the client at the initial consultation; 2.0 in data input and calculations and analysis to prepare her petition, schedules and plan; 1.5 hours at the signing appointment with the client; and 2.5 hours traveling to and attending the trustee’s meeting with the client. My disclosed hourly rate is $180. Finally, I did not “refuse to step down”. Here again, the client does not understand the law. Once a lawyer files a case, she represents that client. If a lawyer wishes to withdraw as counsel, the court must approve it. I asked the client to send me an email asking me to move the court for an order removing me. She insisted that I “recuse myself”. Only public officials recuses themselves. I would not like to continue to represent a client who no longer has confidence in me, even if the loss of confidence is due to their own confusion. The whole thing was a terrible miscommunication which spiraled out of control, which is regrettable, but I think that it has ended as it should. The client has already obtained new counsel. He will get the balance of the fees through her plan and she has not asked for any fees returned. I wish her well and hope that she completes her Chapter 13 plan successfully.If you have any questions, please do not hesitate to contact me. I look forward to resolving this matter quickly.Blessings, Mona ** R[redacted]
November 30, 2015[redacted]Dispute Resolution SpecialistRevdex.com2800 Euclid Avenue, 4th floorCleveland, Ohio 44115-7678Re: [redacted]: It sadness me greatly to learn that a client has contacted you expressing discontent with...
my representation of her in her Chapter 13 bankruptcy.Unfortunately, this client made the mistake of reading a few things on the internet and believing that she understood far more about bankruptcy law than she could possibly understand. A Chapter 13 bankruptcy is a long and complicated process. She was in the process of a short sale on her house in [redacted] when she came to see me. I explained throughout the process that any assets owned at the time of the filing of a bankruptcy become part of the bankruptcy estate. Therefore, she cannot complete the sale without approval from the bankruptcy judge, which takes time. That upset her greatly. That is the law. A motion must be file with the court, time must be given for creditors or the trustee to respond and then it is set for hearing. These motions are fairly routinely granted, but they take time. These requirements are part of the bankruptcy code. It is unfortunate that this client did not understand that clearly from the beginning of our relationship. If I was unclear in any way, I will certainly attempt greater clarity in the future, but I cannot remove the requirement.As far as what her monthly Chapter 13 plan payment will be, I always explain that the plan we submit when the petition is filed is a proposal and that the trustee nearly always wants something changed and the confirmed plan is a negotiated compromise. There were no “miscalculations.” I don’t know what her final plan payment is going to be and neither does she at this point. It may be higher than our original proposal and it may not. I also explained that nothing would be decided without her understanding and approval. Her case was NOT “scheduled to be dismissed.”Attorney fees should be clearly explained: The standard attorney fee for a Chapter 13 in [redacted] is $4000, $800 of which is paid prior to filing, and $3200 is paid over the length of the plan out of the plan payments that the debtor sends to the trustee. The filing fee is $310. That sum, when received from a client is deposited into the firm’s IOLTA account and paid directly to the court from that account. So the only fees I have received for services rendered were $800. For that fee, I spent 1.5 hours with the client at the initial consultation; 2.0 in data input and calculations and analysis to prepare her petition, schedules and plan; 1.5 hours at the signing appointment with the client; and 2.5 hours traveling to and attending the trustee’s meeting with the client. My disclosed hourly rate is $180. Finally, I did not “refuse to step down”. Here again, the client does not understand the law. Once a lawyer files a case, she represents that client. If a lawyer wishes to withdraw as counsel, the court must approve it. I asked the client to send me an email asking me to move the court for an order removing me. She insisted that I “recuse myself”. Only public officials recuses themselves. I would not like to continue to represent a client who no longer has confidence in me, even if the loss of confidence is due to their own confusion. The whole thing was a terrible miscommunication which spiraled out of control, which is regrettable, but I think that it has ended as it should. The client has already obtained new counsel. He will get the balance of the fees through her plan and she has not asked for any fees returned. I wish her well and hope that she completes her Chapter 13 plan successfully.If you have any questions, please do not hesitate to contact me. I look forward to resolving this matter quickly.Blessings, Mona ** R[redacted]