UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

IN RE: CASE NO. 07-45695

CHAPTER 13
Duane & Schelly Nichols, JUDGE: Shefferly

Debtors.
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THAV & RYKE, P.L.L.C.’S RESPONSE TO TRUSTEE’S MOTION TO COMPEL

THAV & RYKE P.L.L.C. TO DISGORGE ATTORNEY’S FEES

NOW COMES the Debtor’s attorney, Thav & Ryke, P.L.L.C, and in response to

Trustee’s Motion to Compel Thav & Ryke, P.L.L.C to disgorge attorney’s fees, states as follows:

1. The allegations of paragraph 1 are admitted.

2. The allegations of paragraph 2 are admitted.

3. The allegations of paragraph 3 are admitted.

4. The allegations of paragraph 4 are admitted.

5. The allegations of paragraph 5 are denied as untrue. Debtor did not state that she
lost her job shortly after confirmation. Rather Debtor stated that, “ Shortly after
confirmation, Debtor Schelly Nichols’ child support ceased. Around the same time,
Debtor Schelly Nichols lost her job as well.”

6. The allegations of paragraph 6 are denied as untrue in the manner and form
alleged and because they contain incorrect statements and conclusions of fact and law. In
fact, many cases are confirmed when funded with income received from unemployment
benefits. According to Debtor’s affidavit filed on 4/22/08, Debtor ‘s unemployment
benefits were approximately $130.00 per month less than what she was receiving from
her employment with Spirit Airlines. She further stated that, “Even after I was only
receiving unemployment compensation I still had no problem making my chapter 13
payments.”

7. The allegations of paragraph 7 are denied as untrue in the manner and form
alleged and because they contain incorrect statements and conclusions of fact and law. If
Debtor’s counsel were aware of her unemployment at the time of confirmation, counsel
would have disclosed this information to the Trustee and the Court. As evidenced by the
affidavit of Jeffrey Thav, filed on 4/22/08, “My office has spoken with that attorney, who
 is no longer employed with us, and she does not recall being advised about her
employment status.”

8. The allegations of paragraph 8 are admitted.

9. The allegations of paragraph 9 are denied as untrue in the manner and form
alleged and because they contain incorrect statements and conclusions of fact and law.
There was no non-disclosure at the time of confirmation. Debtor’s counsel was not aware
of the change of debtor’s employment and contends that it is the practice of Thav &
Ryke, P.L.L.C. to fully disclose any change of circumstances regardless of the status of
the Chapter 13 case. This is reiterated in the affidavit of Jeffrey Thav where it states, “I
train my staff to disclose all changes in circumstances to the court, and file any proper
amendments as necessary.” Further, if confirmation had been denied and the case
dismissed due to Mrs. Nichols’ unemployment status, Debtor’s counsel would have
requested fees by application and filed an application requesting to be compensated for
all Pre-Confirmation work completed on the case.

10. The allegations of paragraph 10 are denied as untrue in the manner and form
alleged and because they contain incorrect statements and conclusions of fact and law.
Debtor’s counsel was not aware of her unemployment status at the time of confirmation.
Had debtor’s counsel been aware, it would have been disclosed to the trustee.

11. The allegations of paragraph 11 are denied as untrue in the manner and form
alleged and because they contain incorrect statements and conclusions of fact and law.
On the contrary, debtor’s counsel believes it would be against the spirit of the United
States Bankruptcy Code to require the disgorgement of any fees where counsel has done
significant work on debtor’s behalf to make this case successful.

12. No response is required to the assertions made in Paragraph 12 of Trustee’s Motion.

However, Debtor’s counsel requests that this Motion be denied and that the Court grant
any other relief as this Court deems equitable and just.

WHEREFORE, Debtor’s counsel prays that this Honorable Court deny the Trustee’s
Motion, and that the Court grant any other relief as this Court deems equitable and just.

Date: April 30, 2008 /s/ Jeffrey D. Thav

Jeffrey D. Thav (P63126)
Attorney for Debtor
29200 Northwestern Highway, Ste. 155
Southfield, MI 48034
(248) 945-1111