Debtors' lawyers pay trustees' fees. The bill encourages trustees to try to dismiss or convert Chapter 7 cases by requiring the debtor's lawyer to pay the trustee's attorney fees in certain cases. An attorney would have to pay the trustee's fees if he or she violated Bankruptcy Rule 9011. In addition, a creditor could ask the court to dismiss or convert a Chapter 7 bankruptcy. However, if the creditor's position is found to violate Rule 11, the debtor could be awarded attorney fees.
Some attorneys feel that the unstated objective of the bill is to make bankruptcy cost-prohibitive.
To try to solve credit problems by making it more expensive to file bankruptcy is like trying to reduce automobile accident fatalities by making the emergency room door smaller. Mandatory credit counseling. Debtors would have to undergo credit counseling, which may include telephone or Internet counseling, within 180 days before filing for bankruptcy. Debtors would also be exempt from this provision if the trustee determined that adequate counseling wasn't available. Disclosure of tax returns.