How time consuming is an Ex Parte Order for Bankruptcy?
I recently wrote my Chapter 13 trustee to write a letter to allow an FHA loan as new debt. There are two months left on the Chapter 13 until it is complete. The trustee said he would not write a letter for the lender, but would allow an ex parte order filed with the court. What exactly does that mean? How long does it take to finalize an ex parte order? What should I expect my attorney to charge to do this?
Also do I have to stay with the original attorney or can I go to a legal student or someone else to get this done? The attorney is over 30 miles (45 minutes to an hour) from me and gas is expensive, plus he said when I originally started talking to him about this he would charge $300 an hour and the court would probably not allow the added debt. I haven't talked to him since I got the letter from the trustee though.
thanks for the info. I talked with the attorney, he said we could add the $600(qouted amount to do the exparte order) to the top of the bankruptcy. We still have to come up with $1500 by August if we want to finalize the bk. Or we can continue to keep it open and have it paid off by April next year or possibly sooner if we add it on and get into a house now. Either way I feel blessed that I have the opportunity to buy a house, and that the trustee will not dispute us doing so.
- Phil RLv 51 decade agoFavorite Answer
You may hire another attorney, but only an attorney licensed to practice in the bankruptcy court of your state may represent you. You can represent yourself (which would be VERY, VERY UNWISE), or you can also, in some states, pay a bankruptcy petition preparer. However, you would have to make the legal decisions, and the preparer cannot practice law and cannot assist you with choosing the correct form of the order.
An ex-parte order means that you would file a motion and proposed order with the bankruptcy court to allow the new debt. I estimate it would take about 2 or 3 hours of time, and if the attorney is charging $300 per hour, then you're looking at from $600 to $900.
As I see it, you have a couple of options: 1) Hire a different attorney who will do this for you at a lower rate. 2) wait the 2 months until the chapter 13 is completed, and then you can do the FHA loan without any need to have the bankruptcy court's permission.
For a referral to a different attorney, contact your local or state bar association.Source(s): 10+ years in the legal profession.
- LesleyLv 51 decade ago
It is illegal for anyone other than an attorney admitted to practice in the district of the bankruptcy court to represent you in this matter. You don't have to have the same attorney represent you, but I can assure you, most attorneys would be hesitant to take on your case for this when you're almost done with your bankruptcy. I'm not sure why the trustee told you what he/she did, because it is my experience that to get a new debt, a motion to incur new debt must be filed and allowed. This doesn't usually take more than two weeks, provided your attorney has the necessary info to get it done.
It sounds like you are going to have your attorney take care of this anyway, just for future reference you CANNOT use a law student or paralegal to do this, and not even an attorney not admitted to that district court either.