Model Retention Agreement (Appendix II)

1Local Bankruptcy Rules 1.1.2006APPENDIX IIMODEL RETENTION AGREEMENT Rights and responsibilities agreement between Chapter 13 Debtors and their AttorneysUnited States Bankruptcy CourtDistrict of IdahoChapter 13 gives debtors important rights, such as the right to keep property that couldotherwise be lost through repossession or foreclosure 226 but Chapter 13 also puts burdens ondebtors, such as the burden of making complete and truthful disclosures of their financialsituation. It is important for debtors who file a Chapter 13 bankruptcy case to understand theirrights and responsibilities in bankruptcy. In this connection, the advice of an attorney is crucial. Debtors are entitled to expect certain services will be performed by their attorneys, but debtorsalso have responsibilities to their attorneys. In order to assure that debtors and their attorneysunderstand their rights and responsibilities in the Chapter 13 process, the Bankruptcy Court forthe District of Idaho has approved the following agreement, setting out the rights andresponsibilities of both debtors in Chapter 13 and their attorneys. By signing this agreement,debtors and their attorney accept these responsibilities. I. BEFORE THE CASE IS FILEDA. THE DEBTOR AGREES TO:1.Discuss with the attorney the debtor222s objectives in filing the case.2.Provide the attorney with full, accurate and timely information, financial andotherwise, including properly documented proof of income. B. THE ATTORNEY AGREES TO:1.Personally counsel the debtor regarding the advisability of filing either a Chapter13 or a Chapter 7 case, discuss both procedures (as well as non-bankruptcyoptions) with the debtor, and answer the debtor222s questions.2.Personally explain to the debtor that the attorney is being engaged to representthe debtor on all matters arising in this case, as required by Local BankruptcyRule and explain how and when the attorney222s fees and the trustee222s fees aredetermined and paid.3. Review with the debtor and sign the completed petition, plan, statements, andschedules, as well as all amendments thereto, whether filed with the petition orlater.4. Timely prepare and file the debtor222s petition, plan, statements, and schedules. 5. Explain to the debtor how, when, and where to make all necessary payments, American LegalNet, Inc. www.FormsWorkFlow.com 2Local Bankruptcy Rules 1.1.2006including both payments that must be made directly to creditors and paymentsthat must be made to the Chapter 13 trustee, with particular attention to housingand vehicle payments. 6. Advise the debtor of the need to maintain appropriate insurance.II. AFTER THE CASE IS FILEDA. THE DEBTOR AGREES TO:1.Make the required payments to the trustee and to whatever creditors are beingpaid directly, or, if required payments cannot be made, to notify the attorneyimmediately. 2.Appear at the meeting of creditors (also called the 223247 341(a) meeting224) with recentproof of income, picture identification, and proof of the debtor222s social securitynumber, and any other required information.3.Notify the attorney and the trustee of any change in the debtor222s address ortelephone number.4.Inform the attorney of any wage garnishment, levies, liens or repossessions of oron assets that occur or continue after the filing of the case. 5.Contact the attorney immediately if the debtor loses employment, has a significantchange in income, or experiences any other significant change in financialsituation (such as serious illness, lottery winnings, or an inheritance.)6.Notify the attorney if the debtor is sued or wishes to file a lawsuit (includingdivorce.)7.Provide the attorney and the trustee with copies of income tax returns, andprovide the trustee with any refunds received, as required by the Court222s IncomeTax Order. Inform the attorney if any tax refunds to which the debtor is entitledare seized or not received when due from the IRS, the State of Idaho, or otherentities.8.Contact the attorney before buying, refinancing or selling any property, real orpersonal, and before entering into any loan agreement. 9.Cooperate with the attorney and the trustee in regard to questions about theallowance or disallowance of claims.B. THE ATTORNEY AGREES TO:1.Advise the debtor of the requirement to attend the meeting of creditors, and notifythe debtor of the date, time, and place of that meeting. 2.Inform the debtor that the debtor must be punctual and, in the case of a joint filing, American LegalNet, Inc. www.FormsWorkFlow.com 3Local Bankruptcy Rules 1.1.2006that both spouses must appear at the same meeting.3.Provide knowledgeable legal representation for the debtor at the 247 341(a) meetingof creditors and at any motion hearing, plan confirmation hearing, and/or planmodification hearing. 4.If the attorney finds it necessary for another attorney to appear and attend the247 341(a) meeting or any court hearing, personally explain to the debtor, inadvance, the role and identity of the other attorney and provide the other attorneywith the file in sufficient time to review it and properly represent the debtor. 5.Ensure timely submission to the trustee of properly documented proof of incomefor the debtor, including business reports for self-employed debtors. 6.Timely respond to objections to plan confirmation and, where necessary, prepare,file, and serve an amended plan. 7.Timely prepare, file, and serve any necessary amended statements andschedules and any change of address, in accordance with information provided bythe debtor. 8.Be available to respond to the debtor222s questions throughout the term of the plan. 9.Prepare, file, and serve timely modifications to the plan after confirmation, whennecessary, including modifications to suspend, lower, or increase plan payments. 10.Prepare, file, and serve necessary motions to buy or sell property and to incurdebt. 11.Evaluate claims which are filed and, where appropriate, object to filed claims.12.Timely respond to the trustee222s motion to dismiss the case, such as for paymentdefault, or unfeasibility, and to motions to increase the payments into the plan. 13.Timely respond to motions for relief from stay. 14.Prepare, file, and serve all appropriate motions to avoid liens, if not included in theplan.15.Provide any other legal services necessary for the administration of this casebefore the bankruptcy court. American LegalNet, Inc. www.FormsWorkFlow.com 4Local Bankruptcy Rules 1.1.2006ALLOWANCE AND PAYMENT OF ATTORNEYS222 FEESAny attorney retained to represent a debtor in a Chapter 13 case is responsible forrepresenting the debtor on all matters arising in the case, unless otherwise ordered bythe court. For such services, as set forth above, the attorney will be paid a fixed fee of$ (exclusive of court filing fees). In extraordinary circumstances, the attorney may apply to the court for additionalcompensation. Any such application must be accompanied by an affidavit of theattorney, and include an itemization of the services rendered, showing the date, the timeexpended, the identity of the attorney or other person performing the services, the rate(s)charged, and the total amount sought. Such an application must be set for a hearingbefore the court. The debtor must be served with a copy of the application, affidavit, andnotice of hearing, and advised of the right to appear in court to comment on or object tosuch application. The debtor is hereby informed that, in the event of such a request,fees shall be calculated or claimed at the following rate(s): .The attorney may receive some portion of the described fixed fee before the filing of thecase. The attorney may not receive payment on the fee directly from the debtor after thefiling of the case, but must receive any remaining portion of such fee through the plan. Inaddition to other disclosures required by the Rules, the attorney shall disclose, in anyapplication for additional fees, any and all fees previously paid by the debtor. If the debtor disputes the sufficiency or quality of the legal services provided or theamount of the fees charged by the attorney, including this fixed fee, the debtor may filean objection with the court and request a hearing