IN RE: KATHRYN R. SMITH-FREEMAN (2024)

Chapter 7

Related to ECF Nos. 27, 40

Related to ECF Nos. 31, 43

Related to ECF Nos. 25, 36

Related to ECF Nos. 19, 29

Related to ECF Nos. 30, 46

Related to ECF Nos. 26, 38

ORDER WITH RESPECT TO THE MOTION(S) OF THE UNITED STATES TRUSTEE TO EXAMINE COMPENSATION OF DEBTOR'S COUNSEL PURSUANT TO 11 U.S.C. § 329

AND NOW, this 24th day of January, 2024, and upon due consideration of the Motion of the United States Trustee to Examine Compensation of Debtor's Counsel Pursuant to 11 U.S.C. § 329 (collectively, the “Motions to Examine”), which were filed in the six (6) cases captioned above (the “Cases”), along with the record made in these proceedings, and for the reasons stated in the Memorandum Opinion issued contemporaneously herewith, the Court hereby ORDERS, ADJUDGES and DECREES that:

1. The Court finds that the provisions of the fee agreements at issue which impose a factoring/administrative fee upon the debtors are unreasonable. The Court also finds that counsel for the debtors failed to adhere to the disclosure requirements under the Bankruptcy Code.

2. As a result, all applicable fee agreements are cancelled to the extent they provide for clients in the Cases paying attorney fees in excess of $425.1

3. To the extent any debtors in the Cases have actually remitted fees in excess of $425 to Mr. Shepherd (or to his factor Fresh Start Funding), Mr. Shepherd is directed to, within sixty (60) days hereof, (a) disgorge and/or return the fees in excess of the $425 paid by the debtors to Mr. Shepherd or his factor Fresh Start Funding; and (b) file with the Court an affidavit providing an accounting of the same and certifying that the disgorgement has been completed.

Case Administrator to Mail to:

Debtors

Office of the United States Trustee

Rodney D. Shepherd, Esq.

FOOTNOTES

1.   Stated in other words, counsel's fees shall be reduced by $1,283.58 in each Case (i.e., reduced by the improper factoring fee of $283.58 and disallowance of $1,000 of fees due to inadequate disclosures). The math as to the allowed fees is as follows: $1,708.58 minus $1,283.58 equals $425.