The U.S. Bankruptcy Court for the Western District of North Carolina announced on Apr. 13 that it will implement several changes to its local rules governing Chapter 13 bankruptcy cases, effective May 1, 2026.
These updates are intended to improve Chapter 13 practice and address inflation by adjusting fees and procedures. The court said these modifications aim to expedite attorney fee disbursements and make the process more efficient for practitioners and debtors alike.
According to the announcement, the presumptive base fee for Chapter 13 debtor’s attorneys will increase from $5,000 to $7,000. The presumptive non-base fee for substitute counsel in ongoing Chapter 13 cases will rise from $500 to $800. The court clarified that this non-base fee is designed for attorneys who join a case midstream; those who enter earlier may request higher compensation up to or above the base fee if appropriate.
Another change involves increasing the Administrative Arrearage in conduit cases from three months to four months with the goal of speeding up payments of attorney base fees. While other proposals were presented by an ad hoc committee of practitioners—organized after suggestions last fall—the court has chosen only this adjustment at present but will monitor its impact and consider further measures as needed.
Additional revisions include raising certain presumptive non-base fees (for example, those previously set at $350 or $450 now move up to $550; those at $200 rise to $300) and creating new categories such as motions related to judicial liens or secured claims by governmental units. The limit on credit approvals by trustees increases from $25,000 to $35,000; associated fees can be authorized without motion via trustee-submitted orders.
Local Forms 3 and 4 will also be updated accordingly. The court encourages practitioners and members of the public with further suggestions about improving local bankruptcy practice in the district.
