Chapter 7 Success Lawyers Chicago - The Model Retention Agreement for Chapter 13 Cases

The Model Retention Agreement for Chapter 13 Cases

If you are a bankruptcy attorney practicing Chapter 13 law in the Northern District of Illinois, you are bound by the terms of the model retention agreement.  The model retention agreement sets out the rights and responsibilities of the attorney and the debtor.  It discusses what the rights and obligations are of the parties prior to a case being filed, and after a case is filed.  Specifically, before a Chapter 13 bankruptcy case is filed, the debtor is agreeing to discuss with the attorney the debtor's objectives in filing the case.  The debtor is also to provide the attorney with full, accurate, and timely information, financial and otherwise, including properly documenting proof of income.

Before the case is filed, the attorney agrees to do the following:
1)         Personally counsel the debtor regarding the advisability of filing either a Chapter 13 or a Chapter 7 bankruptcy case. 
2)         Personally explain to the debtor that the attorney is engaged to represent the debtor on all matters arising in the case, as required by local bankruptcy rules and explain how and when the attorney's fees and trustee’s these are determined and paid.
3)         Personally review with the debtor and sign the completed petition, plan, statements and schedules as well as any amendments that arise.

After the case is filed, the debtor agrees to do the following:
1)         Make the required payments to the trustee and to whatever creditors are being paid directly, require those payments to be made as well. 
2)         Appear punctually at the meeting of creditor's, knwon as the 341 meeting, with recent proof of income and a picture identification card. 
3)         The debtor should notify the attorney of any change in the debtor's address or telephone number. 
4)         The debtor should inform the attorney of any wage garnishments, liens, levies on assets that occur or continue after the filing of the case.

The attorney agrees to do the following after the cases filed:
1)         Advise the debtor of the requirement to attend a meeting of creditors and notify the debtor of the date, time and place of the meeting. 
2)         Inform the debtor that he must be punctual, and in the case of a joint filing, that both spouses must appear at the meeting. 

There are two options in terms of attorney's fees, that being optioned A, flat fee through confirmation and option B, flat fee through case closing.  The attorney must identify which option they are proceeding under.  The agreement also calls for payment in case of early termination of the case.  Specifically, it states, fees payable under the provisions set out above are not refundable in the event that the case is dismissed before confirmation, option A., or completion of plan payments, option B., unless the dismissal is due to a failure by the attorney to comply with the duties set out in this agreement.  If the dismissal is due to such a failure by the attorney, the court may order a refund of fees on motion by the debtor.

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