[CLBS] LBR 2016.1

Paul Ross paul at idbankruptcylaw.com
Tue May 24 14:44:17 MDT 2022


The Form B2030 under 2016(b) only discloses compensation paid or agreed to
be paid, the source of both, and some of the parameters of that
representation.  This form and rule really only address 329(a) of the code,
but not so much 329(b).

Form B2030 also doesn't really cover the requirements of 526, 527, or 528.

By filing a Fee Agreement that covers all those requirements with the
Court, it is immediately clear at the beginning of the case whether the
'debt relief agency' has complied and will continue to do so.

The code doesn't critique creditor attorneys the same as debtor attorneys.
Congress views those grubby debtor attorneys differently.  Although, there
are certainly provisions that permit review of creditors, their
representation, and even their compensation in certain circumstances.

Paul



On Tue, May 24, 2022 at 2:19 PM James Macdonald <
james at macdonaldlawoffices.com> wrote:

> Okay, more egg on my face.
>
>
>
> Then what is the point of Form 2030?  We have always disclosed what we
> charge.   Creditors attorneys don’t have to disclose what they charge.
>
>
>
> Regards,
>
>
>
> James S. Macdonald
>
>
>
> MACDONALD LAW, PC
>
> PO Box 1545
>
> Lake Plaza Building - 123 South Third Avenue, Suite 24
>
> Sandpoint, ID  83864
>
> 208.263.6546
>
> 208.263.0759 (Fax)
>
>
>
> The information in this email message may be privileged, confidential and
> protected from disclosure.  If you are not the intended recipient, any
> dissemination, distribution or copying is strictly prohibited.  If you
> think you received this email message in error, please reply to
> james at macdonaldlawoffices.com or call (208) 263-6546.
>
>
>
> *From:* Paul Ross <paul at idbankruptcylaw.com>
> *Sent:* Tuesday, May 24, 2022 1:13 PM
> *To:* Patrick Geile <PGeile at foleyfreeman.com>
> *Cc:* Alexandra Caval <alex at cavallawoffice.com>; James Macdonald <
> james at macdonaldlawoffices.com>; Ryan Farnsworth <ryan at averylaw.net>;
> Bankruptcy list <clbs at admws.idaho.gov>; Matthew Christensen <
> MTC at johnsonmaylaw.com>
> *Subject:* Re: [CLBS] LBR 2016.1
>
>
>
> There was also a CLE offered on this matter last November.  Part of that
> discussion was expressly related to this rule, where it came from, and why
> it was implemented.  It did not occupy the full hour, but the purposes and
> application were covered.
>
>
>
> Basically, there are issues with Debt Relief Agencies complying with the
> code and rules.
>
> There have been enough issues that the Court is requesting the agreements
> be filed on the Court docket.
>
> Discussions included a generic agreement and other CYA items being
> separately documented and not filed.
>
> Bifurcation issues.
>
> Sunshine helps keep the honest honest.
>
> And other issues were all discussed as part of the implementation of this
> rule.
>
>
>
> For those practitioners who branch beyond 7, this is already required.
> MRA cases also require it (although not regularly complied with), and it is
> part of Employment Applications in other chapters.
>
>
>
> Paul
>
>
>
> On Tue, May 24, 2022 at 1:47 PM Patrick Geile <PGeile at foleyfreeman.com>
> wrote:
>
> From Mr. Farnsworth:
>
> Mr. Macdonald,
>
> I think the answer to your question is that the feedback given in response
> to Tecla Druffel's December email titled "Fwd: [CLBS] We want to hear from
> YOU! Feedback due TODAY by 5 pm MST!" sent to this very listserve was not
> enough to persuade certain members of the rules committee to do anything
> other than implement the rule.
>
> Did you send your feedback when requested?
>
> The judges have recently been frustrated by one attorney who left clients
> in the lurch. This month's issue of The Advocate may provide a little more
> info.
>
> Ryan Farnsworth
> Avery Law
>
>
>
> Patrick J. Geile
> Direct:208-947-1563
>
>
> -----Original Message-----
> From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Alexandra Caval
> Sent: Tuesday, May 24, 2022 1:41 PM
> To: James Macdonald <james at macdonaldlawoffices.com>
> Cc: Bankruptcy list <clbs at admws.idaho.gov>
> Subject: Re: [CLBS] LBR 2016.1
>
> James,
>
> I am not on Rules Committee but if you look at the recent decisions (about
> 45 of them) from the Court, you will notice a common theme - one attorney
> had a problem with his disclosures and in some cases, with actually
> executing representation agreements with his clients. This problem was
> brewing last fall and was likely the catalyst behind new LBR 2016.1. While
> the offending attorney is no longer practicing in Idaho, the rest of us now
> have to comply with this rule.
>
> Alex
>
> On Tue, May 24, 2022 at 1:28 PM James Macdonald <
> james at macdonaldlawoffices.com> wrote:
>
> > Still waiting for someone to explain/justify the need or purpose of
> > LBR 2016.1.
> >
> > Can someone on the rules committee please chime in?
> >
> > Regards,
> >
> > James S. Macdonald
> >
> > MACDONALD LAW, PC
> > PO Box 1545
> > Lake Plaza Building - 123 South Third Avenue, Suite 24 Sandpoint, ID
> > 83864
> > 208.263.6546
> > 208.263.0759 (Fax)
> >
> > The information in this email message may be privileged, confidential
> > and protected from disclosure.  If you are not the intended recipient,
> > any dissemination, distribution or copying is strictly prohibited.  If
> > you think you received this email message in error, please reply to
> > james at macdonaldlawoffices.com or call (208) 263-6546.
> >
> > -----Original Message-----
> > From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of James Macdonald
> > Sent: Monday, May 23, 2022 8:30 AM
> > To: 'Bankruptcy list' <clbs at admws.idaho.gov>
> > Subject: [CLBS] LBR 2016.1
> >
> > Can someone please explain why in the world we have LBR 2016.1?  We
> > already disclose our compensation on Form 2030.  Seems totally
> > redundant, waste of time and paper.
> >
> > Corrective Action: As of January 3, 2022, LBR 2016.1 requires debtors
> > counsel to attach a written agreement establishing the terms and
> > conditions of employment. Such agreement was not attached. Please
> > supplement the record within 7 days
> >
> > Regards,
> >
> > James S. Macdonald
> >
> > MACDONALD LAW, PC
> > PO Box 1545
> > Lake Plaza Building - 123 South Third Avenue, Suite 24 Sandpoint, ID
> > 83864
> > 208.263.6546
> > 208.263.0759 (Fax)
> >
> > The information in this email message may be privileged, confidential
> > and protected from disclosure.  If you are not the intended recipient,
> > any dissemination, distribution or copying is strictly prohibited.  If
> > you think you received this email message in error, please reply to
> > james at macdonaldlawoffices.com or call (208) 263-6546.
> >
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> --
>
> Alexandra O. Caval
>
> Caval Law Office, P.C.
>
> P.O. Box 1716
>
> Twin Falls, ID 83303-01716
>
> T: 208.733.2035
>
> F: 208.733.3919
>
> alex at cavallawoffice.com
>
>
>
>
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> Idaho Bankruptcy Law
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-- 
Idaho Bankruptcy Law
T: (208) 219-7997
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This communication is intended for the party above.  If this e-mail has
been sent to you by mistake, please notify me immediately.  This
information is private and is confidential and unauthorized use can impose
penalties and liabilities.  A client-attorney relationship is not created
without a signed agreement and should not be construed as legal advice
without such an agreement.


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