In re: Laney

Dist. Ct. did not err in affirming Bankruptcy Ct. order that allowed creditor to file amended proof of claim in debtor’s Chapter 13 payment plan to include attorney’s fees generated during pendency of debtor’s Chapter 13 petition. Record showed that: (1) under terms of contract calling for debtor’s purchase of vehicle from creditor, debtor agreed to pay attorney’s fees generated to collect amounts owed under agreement; (2) after creditor submitted initial proof of claim regarding said vehicle and after Bankruptcy Ct. ordered debtor to amend his plan to require debtor to pay vehicle debt in full, parties participated in hearings to address debtor’s failure to provide for full payment of vehicle in his plan; and (3) Bankruptcy Ct. approved creditor’s attorney’s fee affidavit, which represented fees incurred after debtor’s initial failure to properly amend plan to include full payment of vehicle debt. While confirmed payment plans under Chapter 13 are generally binding on both debtors and creditors under 11 USC section 1327(a), creditor’s request for amendment to proof of claim qualified as compelling circumstance to amend proof of claim, where: (1) parties’ contract called for attorney’s fees arising out of collection of debt; (2) debtor’s counsel was aware of existence of fees prior to plan confirmation; and (3) instant fees were reasonable and were legitimately generated because of creditor’s duty to respond to pleadings filed by debtor.