Chapter 13 Periodic Plan Reviews (by attorney.)

[Freejay]

Hello everyone,

My Wife and I filed Chapter 13 about 6 months ago and everything went off without a hitch. My attorney was very good and made the process as easy for us as possible. I just received a letter from his office that he has performed a "Plan Review" to check for any issues, and that he billed my plan nearly $700.00 for this service and performs the review every 6 months or so. My question is....Are these reviews normal and necessary, or do I have a lawyer who has found a creative way of becoming even more wealthy??? Please advise.

Jay

[IamOld]

Jay, others will correct me if I'm wrong, but what he could bill to the plan was included in your plan - in other words, you won't pay any extra...frankly, the other stories we've seen today about CH 13 plans, if the atty says he reviews the plan every 6 months... GOOD!!!

[Freejay]

I believe he filed paperwork to modify the plan....I am checking the PDF now....Kinda getting pissed. I can review the case with the trustee for free if need be...

[IamOld]

I believe he filed paperwork to modify the plan....I am checking the PDF now....Kinda getting pissed. I can review the case with the trustee for free if need be...

freejay - forgive me - and of course I know not the background of your case - but there are a lot of people here who would LOVE to have an atty that is as engaged as yours seems to be...also, if you have an atty, I think aside from very procedural or transactional questions, Trustee would tell you to talk to your atty...

[Freejay]

He charged $3500.00 for the Bankruptcy (billed in the plan.) If he is charging an additional 6K (over the 5 year period) he is all done....I'm pretty sure a chapter 13 shouldn't cost $9500.00...Maybe I'm wrong, but it seems excessive to me. I have stable employment, and the payments are automatically withdrawn from my check via payroll deduction. I would rather keep my 6K...

[Freejay]

He charged $3500.00 for the Bankruptcy (billed in the plan.) If he is charging an additional 6K (over the 5 year period) he is all done....I'm pretty sure a chapter 13 shouldn't cost $9500.00...Maybe I'm wrong, but it seems excessive to me. I have stable employment, and the payments are automatically withdrawn from my check via payroll deduction. I would rather keep my 6K...

Just spoke with him....about 600 a year which includes any additional paperwork (request for my taxes, etc.) I can handle 50 bucks a month.

[IamOld]

Right freejay - but whether the plan pays him or not, your payment doesn't change!!!

[Freejay]

Cool...I just got nervous I guess LOL! Thanks for the input

[momofthree]

As long as you're not in a 0% or 100% plan, then this shouldn't affect your bottom line. It will only affect how much your unsecured creditors receive. Your payment will remain the same regardless.

[Freejay]

Thanks all! My plan is 6 cents on the dollar (6%) and I stripped my second mortgage and rolled my truck loan into the plan (100% payoff at 6% interest.) Hated to do it but when you make a lot of money and then lose your job for 6 months all hell can break loose. Unemployment in MI averages about 9 buck an hour max...I make over 30 an hour (Network Engineer)...Credit cards were used to keep us afloat for a while.

[mountanddo]

So he charged you $3500 for the BK AND he is charging you $600/year to review your case or is that $600 part of the $3500. Are attorney's still obligated to send you a detailed bill even though it is included in the plan?