Can Creditor Add Attorney Fees For Filing Proof of Claim?

[UpsideDownMI]

My case was confirmed on 12/1/09. The deadline to file a proof of claim is about a week away. My mortgage company finally filed their proof of claim. Everything matches up to what I had listed in my plan, except they are charging attorney fees related to my bankruptcy. No other creditor (secured or unsecured) in my case, charged anything for attorney fees on their proof of claims. This kind of rubs me the wrong way since the only thing that they had to do was file a proof of claim.

Should I object to the attorney fees on the proof of claim? I am wondering if I even need to, since my plan is confirmed and they never objected to anything. $800 to file a proof of claim is BS!

[tigergem]

It is my understanding (which is not always correct mind you!) that contrary to the customary treatment of creditors who are not entitled to add interest to their claims after the commencement of a bankruptcy case, a creditor will be entitled to add post-petition interest to its claim amount if the creditor’s claim is secured and the collateral securing that claim is greater than the amount of the claim, or "oversecured." In order for a creditor to be entitled to add fees, costs and other charges to its claim, however, not only must the creditor be oversecured, but the fees, costs and other charges incurred by the creditor must be "reasonable" and provided for in an underlying contractual agreement between the creditor and debtor.

Whether they can do it post confirmation... that is something entirely different. I have no clue.

[justbroke]

Yes, your mortgage company can do this. So long as it is detailed in the Proof of Claim and your Mortgage/Note provides that the creditor can charge you attorney fees and other fees. In other words, if it's enumerated in your contract with the creditor, they can charge you reasonable attorney fees. Sometimes, the "bankruptcy fee" is not reasonable and you can challenge it, but it's usually not worth it.

In your case, $800 to file a proof of claim is BS and you should object to that amount.

[UpsideDownMI]

Thanks for the responses. I am still debating whether to move forward with the objection. I have been very busy lately and am not sure it is worth my time. I think I may wait until the deadline has passed early next week and see if their BS claim negatively affects my plan.