Web posted and Copyright © 1/12/98, American Bankruptcy Institute.

The following abstract summarizes the text of submissions made to the National Bankruptcy Review Commission. The abstract is organized by NBRC working group and topic.

The Final Report of the NBRC can be viewed on-line. To obtain a copy of any document shown below, contact the Center for Legislative Archives, Room 205, National Archives Building, Washington, D.C. 20408. The telephone number is 202/501-5350. Mr. R. Michael McReynolds, Deputy Director, will be able to assist with specific inquiries. (The NBRC documents will be housed at this location until June, 1999. Thereafter, the records will be transferred to the Center's archives in College Park, MD.)

Service to the Estate and Ethics: Fees and Costs
IDNameGroupOtherCode
Sec
Cross
Ref
Problem ReferencedProposed Solutions
NBRC-
0026
"United States Law Week"

726(a)(5)330(a)Whether interest on fees of bankruptcy trustee and other professionals accrues from award of fee or date of appointment or fee application.Interest on fees of bankruptcy trustees and other professionals, distributable from estate property under Section 726(a)(5) of the Bankruptcy Code, accrues from time court awards fee, not from time of trustee's appointment or professional's filing of fee application.
NBRC-
0017
Professor Cynthia A. Baker, "Other People's Money: The Problem of Professional Fees in Bankruptcy," (Working Draft)Professor of Law; Emory University
330
The recent amendments to the Code that were designed to effectively control fees and reign in costs are an attempt "to cure a broken leg with a Band-Aid." Efforts to control costs through after-the-fact judicial review of fees don't work. The problem is that the bankruptcy system of priorities enables the parties to treat professional fees and costs as externalities, costs ignored by the parties to a transaction because they are incurred by other members of society.The system for compensating professionals should be changed. The fees and expenses incurred by an official committee should be charged against distributions to the class or classes that the committee represents; fees incurred by the debtor-in-possession's professionals should be allocated among all classes of unsecured claims and equity interests in proportion to the value of hte property distributed to each class under the plan of reorganization; judicial review of professional fees should be eliminated except where a party in interest objects
NBRC-
0023
Michael J. ChmielChair, Bankr. Law Section IL State Bar Ass'n
523(a)523Attorneys who represent ch. 7 debtors agree to take payments that go beyond the filing of a petition in bankruptcy. Obligation to pay attorneys fees is discharged unless debtor affirms it.Amend section 523(a) by adding subsection (17) that would provide: for reasonable compensation for actual, necessary services rendered by an attorney to the debtor and for actual, necessary expenses incurred by such attorney, in connection with the case under this title in which the discharge is sought.
NBRC-
0043
Cynthia A. BakerAssistant Professor of Law - Emory University School of Law
327330Serious look at system for compensation of professionals in bankruptcy. Current system is inadequate as it relies on an after-the-fact review. It is counter-productive to efforts to reduce the cost of chapter 11. Clients have no incentive to rein in their professionals. '94 amendments took the wrong approach by focusing on fee standards rather than on perverse incentives that lead to overspending.Enclosed article that focuses on flaws in the current system and reforms: each class of creditors should bear its own professionals costs; and eliminate court review except to resolve a dispute between two parties.
NBRC-
0117
E. Rothberg



The increased Chapter 13 debt limits allows attorneys to file more complicated reorgs under Chapter 13, but courts do not permit increases in attorney fees and costs (excpet upon the filing of a Chapter 11 type fee app).Allow attorneys to recover higher fees in Chapter 13, without requiring extensive fee applications (as part of the purpose of Chapter 13 is to lower costs).
NBRC-
0138
Philip B. SchwartzThe Business Law Section of the Florida Bar
327328, 329, 330, 331There are no uniform guidelines for fee applications, retention of professionals or disclosure of conflicts.The Commission should consider whether to amend 11 U.S.C. 1§ 327-331 and Bankruptcy Rule 2016 to include uniform guidelines for fee applications, retention of professionals, and disclosure of conflicts.
NBRC-
0197
J. Stanley PayneAttorney; Corporate Vice President & General Counsel/Secretary of Bassett Furniture


Author is responding to an article by Commissioner Butler that was published in the Insight Newsletter. The author states that administrative claims and expenses for bankruptcy cases are far too high. He concludes that there is something "fundamentally wrong" with the bankruptcy system because bankruptcy cases are providing windfalls to law firms and accounting firms. All too often, administrative costs virtually eat up the estate, leaving nothing for unsecured creditors. He adds that he and his furniture company have witnessed this problem "time and time again," but that they see "little chance that the system will be changed."Bankruptcy Code should be amended to ensure that estates are not unnecesarily dissipated by high administrative claims and expenses.
NBRC-
0220
Denis J. MurphyChair, ABA Standing Committee on Lawyer Referral and Information ServiceRecommendation Re: Lawyer Referral Services503504(a)Section 504(a), a fee-splitting prohibition, currently prohibits lawyers from shraing compensation awarded under § 503(a) with legitimate lawyer referral services. Lawyer referral programs provide an important avenue for moderate income consumers, including bankruptcy clients, to gain information and find a lawyer who is willing and able to resolve their legal problems. In this era of reduced funding for all legal services programs, lawyer referral programs must be allowed to seek innovative methods of funding to ensure their survival. The fee-splitting prohibition contained in § 504(a) was not intended to apply to public service lawyer referral programs. In addition, the prohibition is similar to the fee splitting prohibition contained in the Model Rules of Professional Conduct, for which an exception has been made specifically for public service lawyer referral programs.Amend § 504 to permit a lawyer to whom a referral has been made to pay back to the lawyer referral service a percentage of the compensation awarded under § 503(a). The Committee proposes the following amendment to § 504. Section 504(b)(3): "An attorney who serves as a panel member of a lawyer referral service authorized to operate under the laws of that state, or from which the attorney is permitted to accept referrals under the state's rules or code of professional responsibility, may pay to that lawyer referral service a fee calculated as a percentage of the compensation awarded or received under Section 503(b)(2) or 503(b)(4) of this title." Ths Committee requests that the NBRC add this item to its agenda.
NBRC-
0223
Frank R. KennedyProfessor, Michigan Law School; former Executive Director, Commission on the Bankruptcy Laws of the United States (1973)Cover letter discussing various areas of concern

Author provides a list of 30 "Topics for Consideration by Commission on Bankruptcy Laws." Recommended topics relating to fees are: 1. Control of administrative expenses 2. Imposition of caps on fee allowancesNone.
NBRC-
0269
Fred DomboLegislative Counsel, HALT (Americans for Legal Reform)Cover letter; documents from a case where § 110 sanctions were imposed110
Some bankruptcy judges and trustees are misusing § 110 to impose harsh penalties upon petition preparers, harass petitioners who use their services, and deny petition preparers the fees they earn for their services. The mandates on fees celings vary widely in amounts and rationale, violating the requirement that bankruptcy be uniform throughout the country. Petition preparers serve an important and valuable function. They help pro se petitioners who might otherwise file improperly prepared documents, which in turn helps the court system run more smoothly. The author attaches copies of documents from a case where § 110 santions were imposed."Appropriate steps" should be taken to ensure that § 110 is used only to penalize incompetent and error-prone paralegals, and not to "harrass" the general population of petition preparers.
NBRC-
0283
Michael J. ChmielChair - Commerical, Banking and Bankruptcy Law Section Council, Illinois State Bar Association
523
On occasion, attorneys representing a debtor will agree to take payments over a period of time which goes beyond the filing of a voluntary petition in bankruptcy. Technically, the obligation which accrued prior to the filing of the bankruptcy case is discharged in bankruptcy unless the debtor agress to reaffirm the same. Negotiating with the client is awkward at best. A recent district court case in Arizona confirmed this analysis.Section 523(a) should be amended to make these types of attorneys fees non-dischargeable in bankruptcy. Suggested statutory language is provided.
NBRC-
0303
Commercial Law League of AmericaCommercial Law League of America (CLLA)


The Commerical Law League of America believes that the following fees & costs issues should be considered by the NBRC: criteria for approval of compensation, routine hold-backs, lodestars, and other compensation schemes (CLLA believes that this issue should receive "high priority"); whether requirements for local counsel drive up costs (high priority); and creditors' obligations to reduce costs imposed on the bankruptcy estate (non-priority).No additional details are provided.
NBRC-
0306
Michael T. HertzAttorneyArticle entitled "Cutting Administrative Expenses in Chapter 7 Bankruptcy"

Author attaches an article that he will be submitting to the San Francisco Daily Journal entitled "Cutting Administrative Expenses in Chapter 7 Bankruptcy." In the article, the author argues that the current method for determining chapter 7 trustee fees, which calculates fees case-by-case rather than globally as in chapters 12 and 13, has "profound... impact," and "bear[s] re-examination." This approach, he argues, results in lower returns to creditors and administrative inefficiencies.Author suggests that in chapter 7, as in chapters 12 and 13, each estate should be charged a maximum fee based on distributions through the estate. A panel of chapter 7 trustee's global fees and expenses should be capped in a manner analagous to that of the standing chapter 13 trustee. Moreover, the fees and expenses of certain of the trustee's professionals--particularly accountants and attorneys, who services may be required in non-asset as well as asset cases--be paid from the global pool of revenue generated by all of the chapter 7 trustee's cases.
NBRC-
0308
James R. Covington IIIDirector, Illinois State Bar AssociationProposal from the Illinois State Bar Association's Commercial, Banking, and Bankruptcy Law Section Council, contained in letter dated 3/19/96 from Michael J. Chmiel523
On occasion, an attorney representing a chpater 7 debtor will agree to take payments over a period of time which goes beyond the filing of a voluntary petition in bankruptcy. Technically, the obligation which accrued prior to the filing of the bankruptcy case is discharged in bankruptcy unless the debtor agress to reaffirm the same. Negotiating with the client is awkward at best. A recent district court case in Arizona confirmed this analysis.Section 523(a) should be amended to make these types of attorneys fees non-dischargeable in bankruptcy. Suggested statutory language is provided.
NBRC-
0314
Peter F. GeraciBankruptcy attorneySummaries, a letter, and a decision from a case discussing payments of bankruptcy attorneys over time

"No money down" practitioners, who do not collect their fees before filing, are violating at least one statute. Some pratitioners even lend their clients the $175 filing fee. This practice presents obvious legal and ethical problems, and should not be permitted. Some of these practitioners may ask the NBRC to consider an amendment which would provide an exception for debtors' attorneys fees. This request should be denied because there is not "access to the courts" problem that requires an exception for dischrage for debtors' attorneys fees. Author attaches two summaries of a case that discusses payments of attorneys over time, a letter to a co-editor of a newsletter discussing this case, and a copy of the decision from the case.Opposes any amendment to the Code that would provide an exception for discharge for debtors' attorneys fees, or that would in any other way permit debtors' attorneys to make "no money down" filings.
NBRC-
0318
Paul Mignini, Jr., Mary E. Wysocki and Charles M. TatelbaumPresident-National Association of Credit Management ("NACM"), Chair-NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively
1103
NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.NACM's Government Affairs Committee concludes that § 1103 should be amended to provide that: if one or more professionals are authorized to be employed by a creditors' committee, 25% of any pre-petition retainer given to the debtor's attorney shall be held by the attorney in a separate interest-bearing account pending a bankruptcy court order allowing the payment of fees and expenses to the professionals.
NBRC-
0318
Paul Mignini, Jr., Mary E. Wysocki and Charles M. TatelbaumPresident-National Association of Credit Management ("NACM"), Chair-NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively
1112Rule 9011NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.NACM's Government Affairs Committee concludes that § 1112 should be amended to provide that: in the event that the court dismisses a chapter 11 case based on bad faith, the court may award reasonable attorneys' fees and costs in favor of the parties who moved for the dismissal in accordance with Rule 9011.
NBRC-
0328
Joseph I. WittmanPresident, National Association of Bankruptcy Trustees (NABT)


The author attaches NABT's response to the "U.S. General Accounting Office July 13, 1994 Report on Bankruptcy Administration-Case Receipts Paid to Creditors and Professionals." NABT's states that the statistical information compiled in the GAO report often erronoeusly implies that this fee system is ineffective and costly. NABT concludes that the statistical information presented in the GAO report is of limited value because it represents averages of all chapter 7 cases reviewed. Since percentages on either extreme can result from cases that were ineffectively administered, it is inapporpirate to conlcude that these statistics uncover any problem with the current system. NABT firmly supports the ability of trustees to employ themselves or their firm as the attorney or accountant in the asset cases they administer. This policy is administratively sound, cost effective, and provides for efficient adminstration with minimal delays. Conflicts may arise which call for outside counsel, but these cases are the exception and not the rule.The GAO report provides little insight into chapter 7 issues, and thus is merely an interesting compilation of numbers, averages and statisics. A true analysis of the effectiveness of chapter 7 proceedings must be obtained from direct input of parties involved in the bankruuptcy process.
NBRC-
0329
Brenda K. ArgoePresident, The National Conference of Bankruptcy Clerks ("NCBC")


NCBC is concerned about adequate funding of the judiciary, who is increasingly required to find fundung to cover Congessional mandates or simply to recoup money for shortfalls in the budget. Often, additional funding is raised by increasing fees to already overburdened debtors and creditors. NCBC is also concerned about the impact of the Congressional Accountability Act which would require the courts to pay overtime and establish strict compensatory time guidelines. Imposing these pay requirements could initiate budgetary crsis in the judiciary. The Act would also eliminate the conept of excepted service appointments of judicial employees, which would negatively impact the independence of the judiciary.Clear direction is needed regarding filing and court fee increases because at present they are created on an ad hoc basis to fix immediate crises. Also, the NBRC should remember during its deliberations that the Congressional Accountability Act contains provisions governing employment of judiciary staff that would place undue financial and structural strain on the judiciary.
NBRC-
0334
Vicent P. ZurzoloBankruptcy Judge (C.D. Cal.)


The author attaches his proposal to modify the employment and compensation procedures required by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. The author states that he believes that the compensation and reimbursememnt scheme in the Bankruptcy Code promotes inefficiencies and wastefullness. He attaches a copy of "Bankruptcy Court Decisions," which contains an article discussing this issue.The author recommends that the Code be modified to streamline the compensation procedures, provide ongoing oversight of services and fees, and remove the burden of judicial review of compensation and reimbursement unless and until a party in interest objects.
NBRC-
0373
National Consumer Law Center Inc.National Consumer Law Center Inc. ("NCLC")


The NCLC notes that bankruptcy is the only significant American legal system that bars access to those who are too poor to afford its filing fees. The cost of filing has greatly increased over the years, and more and more debtors find themselves too poor to afford the fees.The in forma pauperis program has worked well in the jurisdictions where it has been tested and should be expanded to all jurisdictions.
NBRC-
0374
Richard CarreraAttorney


Some confusion has arisen over how to treat unpaid attorneys fees that were earned in connection with the filing of a chapter 7 bankruptcy petition. Some attorneys only collect a portion of the fee before filing their clients' petitions, and the Code is unclear as to how the debt for the reamining fees should be addressed.To clarify treatment of these attorneys fees, the Code should be amended to provide that such fees, to the extent that they were earned in connection with the filing of a chapter 7 bankruptcy petition, are nondischargeable debts owed by the debtor in that bankruptcy.
NBRC-
0375
Thomas J. KingChapter 12 Standing Trustee in Bankruptcy


The decisions made in the 6th and 8th Circuits in recent cases in allowing debtor direct payments are having a devestating effect on chapter 12 trustees. While the courts seem to think that the trustee's work load has diminished, in reality the compensation is zero but the trustee continues to have the duty of monitoring the case, attending the hearings for confirmation and post-confirmation matters and administering the case including providing information to anyone who calls and desires such information. In short, these cases have turned the chapter 12 standing trustee into a complete pro bono operation, and is driving trustees to resign.Bankruptcy Code should be amended to provide for proper compensation of chapter 12 standing trustees.
NBRC-
0406
"Bankruptcy Petition Preparer" Anonymous Letter


Some bankruptcy judges and trustees are misusing § 110 to impose harsh penalties upon petition preparers and deny petition preparers the fees they earn for their services. The author has sucessfully defended himself against the § 110 motions, but is concerned about the effort and cost of defending these "unnecessary" motions. Fraud is illegal regardless of the directives in § 110..This section seems to be aimed at driving petitions preparers out of the business instead of protecting against fraud. Section 110 should be eliminated, and the Code should be amended to protect legitimate petition preparers from unwarranted harrassment.
NBRC-
0444
Mrs. Robert HartmanPrivate citizen


"What little regard for 'the people' to have non-lawyers eliminated from the bankruptcy business. Anyone considering bankruptcy is in a condition that would preclude the charges a lawyer is able and encouraged to bill.""Did you ever consider having bankruptcy judges impose low limits on what attorneys charge"
NBRC-
0475
Vincent P. ZurzoloUnited States Bankruptcy Judge, Central District of CaliforniaArticle from Bankruptcy Court Decisions, Vol. 30, Issue 2 dated 1/28/97, and Proposal for Modificaation of the Scheme for the compensation, Reimbursement and Employment fo Trustees and Professionals in Bankruptcy Cases by the author.326
The current scheme of judicial review of compensation and reimbusement does not satisfy the twin legislative intents of: 1) "strictest economy in the expenses of administration" (preserving the estate); and, 2) providing fair and adequate compensation to professionals providing services. Trustees often seek employment of the law or accounting firm to which he or she belongs, which is problematic because it blurrs the line between services that ought to be provided by a trustee and those that may appropriately be provided by a professional employed by a trustee. This also occurs in trustee's use of paraprofessionals.Author proposes a change to the ceiling found in §326 to a presumptive awared of compensation and reimbursement to the trustee. From this award, the trustee must compensate him or herself and all profesionals and paraprofessionals he or she decides are necessary to administer the estate. Author outlines other specifics with regard to his proposal, and also makes a proposal for debtors in possession and their professionals.
NBRC-
0526
Wolfred FreemanPrivate citizen


Author feels lawyers have a hold on the bankruptcy process and charge to much, and that accountants and paralegals could easily handle many cases. Cases take to long and money which should go to creditors goes to attorney's fees.Allow persons other then attorneys to help with cases, include an office of "ombudsman" "to help eliminate some of the abuses and address problems with the present system. The way it is set up now you just can't afford to get justice." "What is so hard about setting up the same system that is used in Traffic Court to speed up the System so that case [sic] are settled quickly.[sic]"
NBRC-
0528
David Fagan, BPPNone given, except "BPP" after name


Author is concerned that people can't get help with bankruptcy cases because of the high cost of attorneys.No specific solutions proposed, but following quote contains a hint: "Any rules that specifically target a pro se debtor's case and can be used to disrupt and complicate it will ultimately limit their access tot he relief that is supposed to be available to them by law."
NBRC-
0581
Donna C. Willard-JonesSecretary, American Bar AssociationResolution adopted by the American Bar Association House of Delegates on February 3, 1997.

Author is forwarding a resolution adopted at the February 3, 1997 meeting of the ABA House of Delegates."...[T]he American Bar Association urges amendment of the United States Bankruptcy Code to allow an attorney to remit a percentage of a fee awarded or received under the Bankruptcy Code to a bona fide public service lawyer referral program, operating in accordance with state or territorial laws regulating lawyer referral services or the rules of professional responsibility governing the acceptance of referrals."
NBRC-
0640
Joel H. KleinAttorney
504
Author is involved in a local bar associations's lawyer referral program. Attorneys pay an annual fee to participate, and then pay 10% of all fees received as a result of direct referrals from the program. All the bankruptcy listees are disclosing this arrangement when they make their affidavit at the time a petition is filed. They have only had two cases in which an objection was raised, both were business cases in which large fees were generated. Author was told that an amendment of Section 504 was going to be proposed to exempt lawyer referral programs of either local or state bar associations."I would appreciate your considering this matter..."
NBRC-
0705
Joel H. KleinAttorney, Douglas & Elms, Inc.
504(b)(3)
Author suggests an amendment to the U. S. Bankruptcy Code that would allow an attorney to remit a percentage of a fee awarded or received under the Bankruptcy Code to a public service lawyer referral program.Amend Section 504(b)(3) as suggested in the letter.
NBRC-
0707
Paul HollenderAttorney, Corash & Hollender, P.C.


Author, on behalf of the Business Bankruptcy Committee of the New York County Lawyers' Association, submits a commentary on the treatment of Small Business Chapter 11 Cases. They are concerned that aggressive judicial and US Trustee criticism of professional fees in small chapter 11 cases is creating a sub-class of small business owners who will not be able to receive legal assistance to save their companies.One solution is to remove the Court and U.S. Trustee from the fee application process for a class of small business Chapter 11. A second solution would be to consciously reduce the frequency of court appearances in "slow-track" bankruptcy cases.
NBRC-
0841
Wendell J. SherkAttorney


"...the Draft points out that the structure of attorney fees in these cases is still to be worked out and invites imput." "The statute is already fairly reliable and functional. The only area it disappoints fromt he debtor's view is the limited circumstances where a creditor's misconduct can lead to payment of fees." "In general terms, attorneys should be paid enough to encourage them to continue zealous representation." Author has an aversion to flat fee Chapter 13 work. He feels it leads to minimalist representation."The Draft proposal should leave fee options to a more local level, as a rule."
NBRC-
0844
David C. AndersenAttorney


"Caps on attorney fess charged in Chapter 13 as is the practice in many courts discourage attorneys from counseling and filing Chapter 13 cases. Chapter 13 cases are far more labor intensive than Chapter 7....Limits on attorney fees not only discourage the filing of Chapter 13 in the first place, but also hurt attorneys' abilities to provide the quality of service debtors need.""Fee caps should be discouraged if attorneys are to (a.) advise and accept a case for Chapter 13 and (b.) adequately render services to the Chapter 13 debtor."
NBRC-
0855
Michael A. RichardsonAttorney


Author is a bankruptcy petitioner and has run into problems over the years in getting his fees paid. He sets a standard fee and spreads the payments out over six months. Occasionally he will get a client who will not pay once he has received the Order of Discharge.Author suggests that the Order of Discharge be withheld by the Court pending receipt of an affidavit from the attorney to the Court stating that the attorney's fee has been paid in full.
NBRC-
0858
Ed Goldwasser, et al.Small World Toys


Attorneys' fees absorb the bulk of the assets to the detriment of the creditors.There should be a cap on the aggregate amount allocable to professional fees of no more than 10% of the debtor's assets.
NBRC-
0892
Robert W. AlbertsU.S. Bankruptcy Judge, Central District of California


No discussion."...I believe it would be most helpful and appropriate to amend the Code to permit attorneys to accept payment of their bankruptcy attorney fees in installments, without running the risk of having the installments which come due after the filing of the bankruptcy petition discharged. In that regard, I suggest a provision specifically rendering debtors' attorneys fees, to the extent allowed by the bankruptcy court, nondischargeable int he bankruptcy for which they were incurred."
NBRC-
0934
Jean BraucherProfessor of Law, University of Cincinnati College of LawJean Braucher, "Counseling Consumer Debtors to Make Their Own Informed Choices--A Question of Professional Responsibility", 5 Am. Bankr. Inst. L. Rev. 165 (1997).

There is unjustified diversity around the country in the methods of payment of attorneys' fees in chapter 13, and lawyers oversell chapter 13 because they can get higher fees, thus leading to the high failure rate for chapter 13 plans."A possible way to address this problem would be to have the law provide for U.S. trustee surveys at regular intervals to determine the median consumer chapter 7 fee in each bankruptcy district. The law could provide that chapter 13 fees are presumptively unreasonable ...when they exceed 135 percent of the median consumer chapter 7 fee." "In addition, paying the full first plan payment to the lawyer, a practice used in some areas, should be prohibited because this gives lawyers an incentive to make plan payments as large as possible, leading to too many 100 percent plans that are not feasible over the long term. Chapter 13 attorneys' fees should have to be paid out by the chapter 13 trustee in equal amounts over some specified period such as a year or two."
NBRC-
0969
Peter C. LongeneckerAttorney


"There is growing opinion that unpaid attorney fees are discharged in the bankruptcy. We have many clients that need to file immediately..., but cannot afford much more than the filing fee at the time, but who are able to pay so much a month toward the attorney fees after the filing.""Make any unpaid Chapter 7 attorneys fees to be allowed to be paid post-petition."
NBRC-
1139
Wolfred FreemanCreditor in a bankruptcyCopy of response by Congressman Randy "Duke" Cunningham to letter sent to him by author.

Author is upset that the bankruptcy process takes so long, but more importantly, that attorneys drag the process out until all of the estate is used up in attorneys' fees and court costs and nothing is left for the creditors.Allow paralegals and accountants "to do the boiler plate and to come before the Court or a Master and settle everything quickly."
NBRC-
1147
Carolyn O'ConnorCredit Manager, Beeswax Designs


In this form letter, author complains of the fact that there is no cap on professional fees, and that these fees are paid in full as billed, leaving no assets for distribution to the unsecured creditor."We would suggest that there be a cap on the professional fees, and that it be based on the net results. They should receive a percentage of their amount billed equivalent to the percentage of distribution to unsecured creditors."
NBRC-
1175
Robert A. ColtonChair, Business Law Section of the Florida Bar


"In the Section's view, the use of special "fee examiners" is an improper delegation of the court's duty to review and award compensation and that the appointment of examiners for such purposes may lead to abuses and unfairness in connection with compensation of professionals working in the bankruptcy system.""In this regard the Section supports the Commission's proposal that the use of fee examiners be precluded by Congress."
NBRC-
1185
G. Russell CogarDebtor in Bankruptcy


Author filed for bankruptcy in Chapter 11 and feels that there was abuse of the system by the trustee and the professionals that he hired.Author would like to see the system changed so that what happened to him will not happen to anyone else.