Servicing Guide

Published September 9, 2020

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When a bankruptcy referral is closed prior to completion, what fees must the law firm be reimbursed for?

If a bankruptcy referral is closed (e.g., bankruptcy case is closed or dismissed) prior to the law firm completing all the services covered by the bankruptcy legal service referral, the servicer must reimburse the law firm for attorney fees that have been prorated to reasonably relate to the amount of legal work actually performed by the law firm and actual, reasonable, and necessary costs incurred by the law firm.

For more information please see: E-5-05, Prorated Attorney Fees / Reimbursement of Uncollected Fees, Costs or Advances

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