In re Frazier

569 B.R. 361, 2017 Bankr. LEXIS 866
CourtUnited States Bankruptcy Court, S.D. Georgia
DecidedMarch 28, 2017
DocketNumber 16-40382-EJC
StatusPublished
Cited by6 cases

This text of 569 B.R. 361 (In re Frazier) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Frazier, 569 B.R. 361, 2017 Bankr. LEXIS 866 (Ga. 2017).

Opinion

[363]*363OPINION.1 ON BARBARA B. BRA-ZIEL’S AMENDED MOTION TO ALLOW POST-PETITION CLAIM

Edward J. Coleman, III, Judge, United States Bankruptcy Court, Southern District of Georgia

Pending before the Court is the Amended Motion to Allow Post-Petition Claim For the Preservation of the Estate (the “Amended Motion”) (dckt. 48) filed by the Debtor’s attorney, Barbara B. Braziel (“Brazier”). In this Chapter 13 case, the Court granted the Debtor’s application to pay the filing fee in installments, allowing him to pay such fee within 120 days from his petition date. However, on the last day set for paying that fee, the Debtor informed his counsel, Braziel, that he was unable to pay the fee. Rather than seeking additional time pursuant to Federal Rule of Bankruptcy Procedure 1006(b), Braziel elected to pay the filing fee to the clerk and then seek reimbursement as an administrative expense. The Court is now called upon to determine whether Braziel may seek reimbursement for her advance of the filing fee through the Debtor’s Chapter 13 plan.

I. JURISDICTION

The Court has subject-matter jurisdiction over this proceeding pursuant to 28 U.S.C. § 1334(a), 28 U.S.C. § 157(a), and the Standing Order of Reference signed by then Chief Judge Anthony A. Alaimo on July 13, 1984. This is a “core proceeding” under 28 U.S.C. § 157(b)(2)(B) (providing that core proceedings include “allowance or disallowance of claims against the estate ... ”).

II. PROCEDURAL BACKGROUND

A. The Debtor’s Chapter 13 Plan

The Debtor filed his Chapter 13 bankruptcy petition and plan on March 7, 2016. (Dckts. 1, 2). In his plan, the Debtor proposed to make 60 monthly payments of $362.00 and pay unsecured creditors a 0% dividend or a prorata share of $100.00, whichever is greater. (Dckt. 2). To date, nine (9) claims have been filed in this case: one (1) secured claim for $14,219.70, seven (7) general unsecured claims totaling $28,197.83 and Braziel’s priority claim for the $310.00 Chapter 13 filing fee.

On March 14, 2016, the Trustee issued a Notice to Commence Wage Withholding and subsequently began to receive the Debtor’s proposed monthly plan payments. A confirmation hearing was held on June 1, 2016. On June 3, 2016, the Trustee filed his Motion on Plan Confirmation (dckt. 28) which provided:

Trustee moves that debtor(s)’ plan be confirmed, subject to payment of the filing fee. The plan commits Debtor(s)’ disposable income to the plan for a period of at least thirty-six (36) months and otherwise conforms to the requirements of Title 11. The plan will pay $100.00 or more to unsecured creditors, but in any event will pay not less than 0.00% of the total allowed unsecured claims.

On June 8, 2016, the Court entered its Order on Confirmation (dckt. 30) conditioning confirmation of the Debtor’s plan upon the payment of the $310.00 Chapter 13 filing fee.

B. Filing Fee Installments

Along with his petition, the Debtor filed an Application to Pay Filing Fee in Installments (dckt. 4), which was granted by this [364]*364Court’s order dated March 9, 2016 (dckt. 9). Pursuant to this order, the Debtor was required to pay the $310.00 Chapter 13 filing fee on or before July 5, 2016 2 in no more than four installment payments. (Dckt. 9). The Debtor failed to pay his filing fee by the July 5, 2016 deadline and did not seek a 60-day extension of such deadline as allowed by Bankruptcy Rule 1006(b)(2). As a result, on July 7, 2016, the Court entered its Order To Pay Filing Fees requiring the Debtor to pay his filing fee in full, or provide a written request to be heard on or before July 21, 2016, to avoid dismissal of his ease. (Dckt. 32)

C. The Advance by Braziel

According to Braziel, after the Court filed its Order to Pay Filing Fees, she spoke with the Debtor by telephone regarding his need to pay the filing fee to prevent dismissal of his bankruptcy case. (Dckt. 48, ¶ 8). After determining that the Debtor did not have sufficient funds to pay the filing fee, Braziel asserts that she “agreed to advance the $310.00 expense, pay the filing fee to the Court, and thereafter seek allowance of an administrative expense claim in the Debtor’s case.” Id. On July 21, 2016, Braziel electronically paid the filing fee on the Debtor’s behalf. Because the filing fee was paid, the Court granted confirmation of the Debtor’s plan on August 3,2016. (Dckt. 35).

D. Braziel’s Proof of Claim

Shortly after paying the filing fee, on July 26, 2016, Braziel filed a proof of claim (Official Form 410) for a $310.00 claim based on “[s]ervices performed.” (Claims Register 9-1). Braziel made the following representations in her proof of claim:

1) Paragraph 9 of Official Form 410 asks: Is all or part of the claim secured? Braziel checked “Yes” and described the nature of the property securing her claim as “Administrative Fees.”
2) Paragraph 12 of Official Form 410 asks: Is all or part of the claim entitled to priority under 11 U.S.C. § 507(a)? Braziel checked “No.”
3) Part 3 of Official Form 410 asks who is the person completing the proof of claim. Braziel checked “I am the trustee, or the debtor, or their authorized agent.”

(Claims Register 9-1).

Braziel then filed her Motion to Allow Claim 93 (“Motion to Allow Claim”) seeking an order from this court allowing her $310.00 claim to be added to the Debtor’s case as an “administrative claim” and directing the Trustee “to fund this claim in accordance with the terms of the confirmed plan.” (Dckt. 34). Braziel’s Motion to Allow Claim did not invoke any section of the Bankruptcy Code or a Bankruptcy Rule in support of her claim. Nor did Braziel attach or reference any document specifying the Debtor’s obligation to repay this advance.

On August 30, 2016, the Trustee objected to Braziel’s Motion to Allow Claim on the following basis:

The claim is for the post-petition payment of the filing fees due the Court for [365]*365the filing of the Chapter 13 petition. The motion circumvents the provisions of the General Order 2015-54 providing for the payment of the filing fees directly to the Clerk. The provisions of Title 11 allowing for the payment of compensation and reimbursement awarded under 11 U.S.C. § 330(a) do not contemplate reimbursement for the filing fees due the Court in order to file a Chapter 13 petition. The filing of a claim for the reimbursement of the filing fee indicates that the attorney is no longer a disinterested person and may have an interest adverse to the estate as a creditor in the case with an administrative claim.

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Cite This Page — Counsel Stack

Bluebook (online)
569 B.R. 361, 2017 Bankr. LEXIS 866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-frazier-gasb-2017.