Opinion
BANKRUPTCY CASE NO: 08-10551-JFS.
July 21, 2008
Mark A. Neal, Office of the U.S. Trustee, Baltimore, Maryland, Attorney for the U.S. Trustee.
Arnold R. Silbiger, Baltimore, Maryland.
STIPULATION AND CONSENT ORDER REGARDING DEBTOR'S COUNSEL'S FEES
WHEREAS, on January 14, 2008, Steven L. Burks (the "Debtor") filed a voluntary petition under Chapter 7 of the Bankruptcy Code;
WHEREAS, the Debtor is represented in this case by attorney Arnold R. Silbiger;
WHEREAS, the U.S. Trustee identified a number of deficiencies on the Debtor's Schedules and Statement of Financial Affairs that the U.S. Trustee believes are, in large part, the responsibility of Mr. Silbiger and impact the reasonableness of the fees received by Mr. Silbiger in this case;
WHEREAS, upon being contacted by the U.S. Trustee regarding this matter, Mr. Silbiger agreed to voluntarily disgorge his entire fees of $1,000 and to refund such fees to the Debtor; WHEREAS, in accordance with his agreement with the U.S. Trustee, on April 29, 2008, Mr. Silbiger mailed a check for $1,000 to the Debtor, but such letter was returned to Mr. Silbiger as undeliverable;
WHEREAS, since early June 2008, the U.S. Trustee has made repeated attempts to contact the Debtor which have included, at a minimum, mailing him a letter at his last known address, leaving several messages at what Mr. Silbiger represents is the Debtor's cell phone number, contacting the Debtor's landlords and his prior mortgage company, and running reports from personal information databases to which the U.S. Trustee has access. Unfortunately, none of these efforts have been fruitful in reaching the Debtor;
WHEREAS, as an alternative to a refund to the Debtor, Mr. Silbiger and the U.S. Trustee have agreed that Mr. Silbiger should pay his disgorged fees to the Maryland Volunteer Lawyers Service ("MVLS"), a non-profit charitable organization that helps secure pro bono representation, including bankruptcy representation, to economically disadvantaged individuals. The U.S. Trustee represents that directing Mr. Silbiger pay the disgorged fees to MVLS is particularly reasonable in this case where the deficiencies the U.S. Trustee alleges were the responsibility of Mr. Silbiger did not prevent the Debtor from receiving his discharge in the normal course of his no asset Chapter 7 case;
WHEREAS, Mr. Silbiger and the U.S. Trustee desire to resolve the U.S. Trustee's concerns regarding the reasonableness of Mr. Silbiger's fees in this case by the terms of this Stipulation and Consent Order.
NOW, THEREFORE, Mr. Silbiger and the U.S. Trustee do agree, stipulate and consent as follows:
1. The foregoing recitals are true and correct;
2. Mr. Silbiger shall disgorge the entire fee of $1,000 he received in this case;
3. Mr. Silbiger will, no later than five (5) business days after the approval of this Stipulation and Consent Order, transmit to the United States Trustee a check made payable to the "Maryland Volunteer Lawyer Service" in the amount of $1,000, and the U.S. Trustee will, in turn, timely transmit the check to MVLS; and
4. Once the disgorgement and payment to MVLS contemplated herein have been effectuated, the U.S. Trustee shall file a line with the Court certifying same and requesting that this case be closed.
Having reviewed the terms and conditions of this Stipulation and Consent Order and finding the terms and conditions contained herein to be reasonable, it is by the United States Bankruptcy Court for the District of Maryland, SO ORDERED.