The Court has issued a revised administrative order (23-1) on the "No App" fees for representing debtors in Chapter 13 cases. The Court made several changes, applicable in cases filed on or after January 1, 2023.
Increased "No App" Fee
The headline change is the increase to the "No App" fee from a maximum of $4,250 under the original order to a maximum of $4,950 for attorneys certified in consumer bankruptcy law and $4,700 for attorneys who are not certified.
Removal of "Success Incentive"
The original administrative order provided that a portion of a No App fee would represent a "Success Incentive," payable only if the debtor completed the plan. The new order does not specify any restrictions on the timeline within which a debtor's attorney may receive the full "No App" fee.
Cases Dismissed Pre-Confirmation
The new administrative order increased the allowable portion of the No App fee in a case that is dismissed prior to confirmation of a plan. The previous order limited an attorney to $500 absent an "appropriate motion." The new order specifies that the allowable portion of the No App fee in this scenario is $1,500 (less any amounts paid prepetition).
Cases Dismissed Post-Confirmation
For a case dismissed after confirmation of a plan, the new order requires an attorney to file a fee application to the extent the attorney "seeks an amount in excess of $2,500 (less amounts previously paid) from remaining funds held by the Trustee." The order does not specify the procedure for requesting funds on hand to the extent the attorney has received less than $2,500 of an awarded No App fee. The order specifically states that it does not “grant a right to debtor’s attorney to any portion of funds held by the Chapter 13 Trustee in a dismissed case.”
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