NOTE: THIS DOCUMENT IS ONLY A DRAFT - DO NOT SIGN THIS FORM.  ONCE MS. DRAIN AGREES TO ACCEPT YOU AS A CLIENT WE WILL PROVIDE YOU A RETAINER.

I, ____, the undersigned, hereinafter referred to as "Client", agrees to employ DIANE L. DRAIN, hereinafter referred to as "Attorney", to render legal services in connection with the above matter, and hereby empower and authorize Attorney to do all things, in her sole discretion, reasonably necessary to bring the matter to a successful conclusion.  Client acknowledges that the following fee arrangement has been fully explained, and Client agrees to pay said fees and costs in consideration of legal services rendered or to be rendered.

1.     Client agrees to pay an attorney’s fee of $___ per hour, with a flat fee of $___ for the services set forth below.  This flat fee is limited to a duration of three months after the date of this retainer agreement.  If a bankruptcy is not filed within the stated three months the flat fee may be increased

2.       It is understood that the above referenced flat fee is payment for services rendered and services to be performed.  The services rendered include: review of financial status; review of various documents related to debts and obligations; counseling as to various types of bankruptcy chapters; effect of bankruptcy on future ability to obtain new credit; effect of reaffirmation, redemption, avoiding liens and surrendering property; specific advice regarding how to avoid bankruptcy and alternatives to bankruptcy; complete drafting of a required bankruptcy documents; revision and redraft of final bankruptcy documents; attending creditors' meeting, and closing of file.  If this is a chapter 13 case, then the flat fee includes drafting and noticing of the Plan of Reorganization, attending up to 2 confirmation hearings, and drafting the Order confirming the Plan.

3.       In addition, Client agrees to pay all costs, including the filing fee for the bankruptcy.

4.       The Client agrees that should they fail to complete the bankruptcy or decide not to continue using Ms. Drain's services she may charge against any retainer or monies on deposit with the Trustee the amount of $___ per hour for all services rendered to date, plus actual costs incurred. 

5.       Client agrees to cooperate in the preparation of the bankruptcy case, to appear for creditors' meeting, depositions and court appearances and to comply with all reasonable requests made to in preparation of this bankruptcy case.  Failure to so cooperate may result in Court-imposed sanctions and Attorney's withdrawal from the case.

6.       Client understands that they shall receive copies of all documents related to their file.  That they are to retain those documents as their copy of their file.  Should client require additional copies of the attorney’s file the Client understands that they will be charged for those copies.

7.       Client understands that their file shall be kept for no more than five years.  Should they require copies of any documents they must request those copies before the expiration of that five-year period.

8.       Client also agrees that the fees referenced in this agreement shall be increased $____ per hour if Client fails to timely return Ms. Drain inquiries.  Client understands that Ms. Drain is offering a reduced hourly rate as an incentive to Client to be actively involved in my case and to help in whatever manner she requests.  Ms. Drain's increased fee shall not become effective until she has sent written notification to Client.

9.       Client agrees that additional attorney's fees will be due should additional representation become necessary, including, but not limited to any additional confirmation hearings, 2004 examinations, any adversary matters, such as Motion for Relief of Stay, dischargeability action, or any other action, hearing or representation that is not specified in paragraph 1 of this retainer agreement.  Attorney time shall be billed at the rate of $____ per hour; and legal assistant time at $___ per hour.  These amounts shall be charged for all consultations, preparation of instruments, telephone conversations and any other matters that may be required.  It is further understood that hourly rates may change, from time to time, based upon the experience of the attorneys involved and market conditions.  All statements are due within 10 days of receipt.  After 30 days from the date of any statement interest will accrue at eighteen percent per annum.

10.    Client assumes responsibility for payment of all additional costs incurred, other than those set forth in Paragraph 1, including, but not limited to, court costs, service of process, long-distance telephone calls (plus handling fees), investigative fees, photocopying at $.10 per page, facsimile transmissions and receipts and computer-assisted legal research.

11.    Client agrees that should they fail to timely pay the fees and costs set forth herein that their debt may be referred to a collection company and/or to a credit bureau.

12.    Client agrees that Attorney may immediately withdraw from representation should Client fail to make regular monthly payments to either the secured lienholders or the Bankruptcy Trustee without first contacting Ms. Drain to ask for her assistance.

13.    It is agreed that, upon the event of any default or breach of any kind under this Agreement by Client, Attorney reserves the right to suspend all activities on behalf of clients, upon written notice, and, as stated above, to withdraw as counsel of record in any pending proceedings or litigation.  It is further agreed that undersigned Client shall not have any recourse or claim against Attorney or any member of Attorney's firm for damages following the cessation of representation or Attorney's withdrawal as counsel.

14.    Client hereby agrees, authorizes and consents to Attorney's withdrawal from any further representation, including any pending litigation, without further written consent by Client in the event Client fails to make the necessary payments as set forth in paragraph 2 of this agreement. Client acknowledges and agrees that, if Attorney moves to withdraw from representation of Client in any pending litigation, that Client shall make suitable arrangements to be prepared for any pending trial or hearing.  Termination of representation by Attorney shall not affect Client’s responsibility to pay Attorney for legal services and costs incurred up to the date of termination, for the time and costs necessary to transfer this matter to substitute counsel and for time and costs necessary to withdraw from the case.

15.    Client understand that as a sole practitioner, Attorney has agreed to work with at least one other attorney who would be available to review Attorney's cases in the unlikely, but nevertheless possible, event that Attorney should die or become suddenly disabled.  Attorney has selected someone (individuals) in whose professional skills and ethical values Attorney has confidence.  By signing this agreement, you are giving that attorney(s) permission to review your file, to act on your behalf in my place, and to protect your interests until such time as you may desire to make alternative arrangements.  Such a review of the file will not be a violation of our attorney-client privilege.  The attorney handling your case will notify you promptly of my status, and if you desire, make your file and any unearned balance of your retainer available to you upon your written request.  The attorney may be compensated from the balance of your retainer for efforts expended on your behalf, may expend funds for necessary costs to expedite your case in the same manner as Attorney would, may associate other counsel as needed to facilitate the management of your case, and may compensate me or my estate for the value of the services Attorney has performed for you, until such time as you may desire to make alternative arrangements.  You will be responsible for any additional funds due to the new attorney, over and above the balance of the retainer.  You will of course, be entitled to a full accounting from all attorneys.

16.    As of April 2005, Congress has decided that all lawyers must state that they are "debt relief agencies".  I am proud to say that our office is in the business to help people file for bankruptcy relief under the Bankruptcy Code.

17.    This constitutes the entire agreement between or among the parties hereto and shall be binding upon the parties hereto, their successors-in-interest, heirs and assigns.

18.    Arbitration: If a dispute arises between the Firm and Clients regarding attorneys’ fees and/or the services provided in the engagement, the parties agree to resolve that dispute through mediation, followed by arbitration before any suit is filed.

19.    Client acknowledges the receipt of an original of this Fee Agreement.

20.    BY CLIENT’S SIGNATURE BELOW, I ACKNOWLEDGE THAT I UNDERSTAND THE TERMS OF THIS AGREEMENT AND AGREE TO ABIDE BY ITS PROVISIONS.  I HAVE RECEIVED AN EXTRA COPY OF THIS AGREEMENT FOR MY RECORDS.