Laura Allen

1At the August 16, 2005 hearing scheduled by the Court to consider such Stipulation and Order,
the Chapter 13 Trustee opposed court approval thereof. See 11 U.S.C. § 1326(a)(2) (“If a plan is not
confirmed, the trustee shall return [funds on hand] to the debtor [emphasis added]....”)
Initially, I indicated to debtor’s counsel that if he pressed for Court approval of such Stipulation, I
would require his written submission justifying why Court approval was appropriate, with an opportunity
for both the Chapter 13 Trustee and the U.S. Trustee to express their respective views in writing. I also
indicated that I would be consulting my colleagues in an effort to consider a uniform, district-wide policy.
It now appears that none of my colleagues intend to approve any such stipulations.
First, absent the appropriate request for relief on proper motion to the Court (see, e.g., Code §
329, Fed.R.Bankr.P. 2017), the Court is not being called upon to resolve any dispute concerning
counsel’s fee. Second, once refunded by the trustee, the debtor is free to dispose of any returned funds as
applicable non-bankruptcy law may permit, including payment of any outstanding legal fees. These
reasons I give as my own - - not necessarily that of my colleagues - - in declining to approve such
stipulations.
I am not unmindful of the difficulty debtor’s counsel may sometimes have in collecting unpaid
fees in dismissed chapter 13 cases; however, compelling the chapter 13 trustee, and inviting the Court, to
join the fee collection process is not the appropriate remedy.
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
In re 	: 	CHAPTER 13
:
LAURA ALLEN 	:
f/k/a LAURA WHITE, 	:
:
Debtor. 	: 	Bankruptcy No. 05-19531KJC
ORDER
AND NOW, this 25 th day of August, 2005, counsel for debtor having submitted a
“Stipulation and Order” (Docket No. 7) for approval by the Court;
And such Stipulation and Order providing, in part, the following:
In the event the above name Debtor(s)’ chapter 13
bankruptcy petition is dismissed or converted for any
reason prior to confirmation, the Standing Chapter 13
trustee shall forward any refund directly to our/my
attorney, John L. McClain;
It is hereby ORDERED that such Stipulation and Order is not approved by the Court. 1
Case 05-19531-elf Doc 14 Filed 08/25/05 Entered 08/25/05 14:59:05 Desc Main
Document Page 1 of 2

BY THE COURT:
KEVIN J. CAREY
UNITED STATES BANKRUPTCY JUDGE
Copies to:
Honorable Diane W. Sigmund, Chief Judge
Honorable Thomas M. Twardowski
Honorable Bruce I. Fox
Honorable Stephen Raslavich
Laura Allen
f/k/a Laura White
3500-02 N. 23rd Street
Philadelphia, PA 19140
John L. McClain, Esquire
John L. McClain and Associates, P.C.
1420 Walnut Street, Suite 318
Philadelphia, PA 19102
William C. Miller, Esquire
(Chapter 13 Trustee )
111 S. Independence Mall
Suite 583
Philadelphia, PA 19106
Leroy W. Etheridge, Jr., Esquire
Office of Chapter 13 Standing Trustee
P.O. Box 40119
Philadelphia, PA 19106
Frederic J. Baker, Sr., Esquire
Senior Assistant United States Trustee
833 Chestnut Street, Suite 500
Philadelphia, PA 19107
Timothy B. McGrath, Clerk, U. S. Bankruptcy Court
Pamela Blalock, Courtroom Deputy Clerk
Case 05-19531-elf Doc 14 Filed 08/25/05 Entered 08/25/05 14:59:05 Desc Main
Document Page 2 of 2