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Unpaid Chapter 13 Legal Fees Should not be Discharged According to Latest ABI Poll

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Contact: John
Hartgen


            
(703) 739-0800

            

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UNPAID
CHAPTER 13 LEGAL FEES SHOULD NOT BE DISCHARGED, ACCORDING TO LATEST ABI
POLL


size='3'>July 31, 2006, Alexandria, Va.

size='3'>— The majority of respondents to a recent American
Bankruptcy Institute online poll agreed that remaining legal fees unpaid
after a chapter 13 bankruptcy proceeding has been discharged must be
paid by the debtor and should not be discharged, even though the
confirmed plan provides that fees can be paid directly by the debtor.
Forty-seven percent “strongly agreed,” while an additional
14 percent of respondents “agreed somewhat” that unpaid
legal fees should be paid by the debtor after the debtor’s chapter
13 case is discharged.

Conversely, 23 percent of
respondents disagreed that unpaid legal fees in a chapter 13, even if
the filing has been discharged, should be paid by the debtor. Twelve
percent “strongly disagreed,” while 11 percent
“disagreed somewhat.” Fifteen percent of the respondents did
not know or had no opinion on the issue.

ABI membership and members of
the public were welcome to submit their response to the statement:
Legal fees remaining unpaid post-discharge in chapter 13 must
be paid by the debtor and are not discharged, even though the confirmed
plan provides that fees can be paid directly by the
debtor.”
 The latest ABI Quick Poll was open for voting to
the public from July 21 – July 27.

ABI’s weekly Quick Poll
is posted on ABI’s home page,

href='/AM/Template.cfm?Section=Home'>
color='#800080' size='3'>
www.abiworld.org. ABI members and the public are invited to respond
to a question on a timely bankruptcy or insolvency issue. Visit


size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick
Polls.

###

ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
11,500 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional conference
information, visit
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http://www.abiworld.org/conferences.html.