Case Summary:
Chapter 13 debtors’ counsel requested approval of his proposed fee of $14,000 out of the $15,000 settlement proceeds related to alleged violations of the automatic stay and FDCPA.  The fee agreement stated that counsel would not charge the debtors for his time related to the stay violation actions; instead, the debtors agreed that counsel could seek attorneys’ fees from defendants at hourly rates ranging from $350 to $550 per hour for attorney time in addition to a 45% contingency fee.  The court approved the settlement, but reduced the requested attorneys’ fees as unreasonable under §329(b).