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2016-2 Debtor's Counsel Disclosures in Chapter 7 and 13 Cases

(a)   Disclosure of Compensation. The debtor’s attorney shall file a statement disclosing the compensation paid or agreed to be paid for services rendered or to be rendered on behalf of the debtor.  The disclosure shall describe the services covered by the compensation previously paid; the services for which additional compensation has been promised or for which additional compensation will be charged; and the fees to be charged for the additional services, or the basis for computing those fees if the fee is not a fixed fee.  This Local Rule shall not limit the court's authority to determine compensation for debtor's counsel.

(b)   Scope of Representation. The debtor’s attorney shall represent the debtor in the case, through the granting or denial of a discharge and all proceedings related to the case unless, within the disclosure of compensation described in subsection (a) of this Local Rule, the attorney specifically limits the services to be provided for the agreed fee.  No limitation of an attorney's engagement with a debtor shall be effective unless the attorney attaches to or incorporates in the disclosure a written agreement, signed by both the attorney and the debtor, identifying the types of actions, proceedings and matters not included in the attorney's undertaking.  An agreement to limit services shall not affect the court’s authority to supervise the attorney/client relationship.

(c)   Procedures Statement. In addition to the disclosure required by subsections (a) and (b) of this Local Rule, in chapter 13 cases the Disclosure of Compensation of Attorney for Debtor shall be accompanied by a procedures statement containing:

(1)      Residential Mortgage and Plan Payments.

(i)       The debtor's duty to make all post-petition payments on loans secured solely by the principal residence and loans that are subject to treatment under 11 U.S.C. §1322(b)(5), and to retain proof of all payments;

(ii)      the procedures debtor shall follow to communicate with counsel if the debtor defaults on secured obligations post-petition;

(iii)     the procedures debtor shall follow to communicate with and provide evidence to counsel if a creditor moves for relief from or modification of the automatic stay on the basis of lapsed insurance, payment default, or other post-petition default;

(iv)    the necessity of making mortgage and plan payments before confirmation of a proposed plan; and

(v)     the procedures the debtor shall follow to communicate with and provide evidence to counsel if the debtor becomes delinquent in plan payments or the trustee moves to dismiss or convert the case due to the debtor's default on plan obligations.

(2)      No Communication with Creditor's Attorney. The procedures statement shall advise the debtor not to communicate directly with the office of counsel for a creditor seeking stay relief regarding the motion, unless the court orders otherwise.

(3)      Signed Statement. Debtor's counsel and debtor shall sign and date the statement below an indication that the content of the statement has been related orally to the debtor by the debtor's counsel and that the debtor has received a copy.

(4)      Failure to File Procedures Statement. Failure to file the procedures statement within fifteen days after filing the petition may be cause for reduction of compensation or other appropriate sanctions.