Paying Attorney Fees for a Motion to Lift Stay
When a motion to lift the stay is filed by a secured creditor; their attorney charges attorney fees to the Debtor. Here lately, we have had a lot of people trying to dispute these fees. They feel that they are not fair and shouldn’t be charged for them. The problem is, they may not see if fair, but the Debtors were delinquent when the motion was filed and that is all the Judge is going to worry about. If you were current on the date that the attorney filed their motion, then the outcome would be different. If you find yourself in this position, you will have to remember that even if you are a day late, you will be required to pay the attorney fees. In bankruptcy, you no longer have the grace period that the mortgage company used to give you. You have to make sure that you make the payments on the first of each month.
If you think about disputing attorney fees, I suggest that you are absolutely sure that you were 100% on time every month that they show you were delinquent, otherwise be prepared to pay the fees. A recent opinion from the Judge last week, allowed the Debtor two choices. One was to pay the attorney fees, because they were delinquent when the mortgage company filed the motion or second, surrender the home, because the home was not their homestead and they should have never become delinquent on it in the first place, because they were receiving rental income on the property. Of course, they decided that they will pay the attorney fees and move forward.
Another thing to remember is, most opposing counsels will allow us to put the fees into the chapter 13 plan and allow you to pay them through the trustee, which may only increase your plan payments about $25-$30 per month. If you have additional questions or concerns, it is very important that you contact your attorney right away.
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