GERALD D. FINES, Chief United States Bankruptcy Judge.
This matter having come before the Court on a Motion for Allowance of Late Filing of Proof of Claim and Objection to Claim; the Court, having heard arguments of counsel and being otherwise fully advised in the premises, makes the following findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure.
On May 31, 2001, Creditor, Meritech Mortgage Services, Inc., filed a Motion for Allowance of Late Filing of Proof of Claim indicating that it was scheduled as a creditor on the Debtor's bankruptcy petition, and that it wished to file a claim in the amount of $3,065.37, for pre-petition arrearages on the Debtor's first mortgage relating to real estate located at 1607 East Bourbonnais, Kankakee, Illinois. Concurrent with the Creditor's filing of the Motion for Allowance of Late Filing of Proof of Claim, Debtor filed an Objection to Claim in which the Debtor objected to attorney's fees and late fees being charged in connection with the Debtor's pre-petition arrearage on her mortgage. While the Debtor admits that there was a pre-petition arrearage on the mortgage, the Debtor claims that the attorney's fees and late fees are excessive and that said fees were incurred due to an error in accounting on the part of Meritech Mortgage Services, Inc. This matter was set for hearing on June 14, 2001, continued to July 12, 2001, and again continued to August 9, 2001, based upon the parties' indication that they were attempting to resolve the issues regarding attorney's fees and late fees.
A final hearing was held on August 9, 2001, at which time the parties indicated that they were unable to resolve their differences, and the Court was advised that the Debtor still maintained that the attorney's fees charged by the Creditor in regard to the pre-petition arrearage were excessive. Although Debtor's counsel made argument that the attorney's fees at issue were charged as a result of an error in accounting on the part of the Creditor, there was no dispute that there was a pre-petition arrearage on the Debtor's mortgage and that that arrearage, in large part, was the reason for the Debtor's filing of the instant Chapter 13 bankruptcy proceeding. The Creditor responded to the Debtor's Objection to Claim by stating that it was required to proceed with foreclosure proceedings, it was necessary to obtain counsel in order to pursue foreclosure, and that the attorney's fees being charged and made a part of the Creditor's Proof of Claim were reasonable and necessary in light of the difficulties Creditor had encountered in collecting its mortgage arrearage prior to the filing of the instant bankruptcy proceeding.
Following the hearing, the Court has had the opportunity to review the Proof of Claim filed by the Creditor, on May 31, 2001, and the arguments of counsel, and concludes that, although the attorney's fees charged by the Creditor are substantial, under the circumstances it appears that those fees were reasonable and necessary and that no basis has been shown by the Debtor in support of her Objection to Claim to reduce the attorney's fees which are a part of the pre-petition arrearage in the amount of $3,065.37. As such, the Court finds that the Motion for Allowance of Late Filing of Proof of Claim should be allowed, and the Creditor's Proof of Claim should be allowed as a secured pre-petition arrearage claim on the Debtor's mortgage in the amount filed of $3,065.37. The Court further finds that the Objection to Claim filed by the Debtor on May 31, 2001, should be denied.
ORDER
For the reasons set forth in an Opinion entered on the ___ day of August 2001;
IT IS HEREBY ORDERED that:
A. The Motion for Allowance of Late Filing of Proof of Claim is ALLOWED; and,
B. The Objection to Claim filed by the Debtor on May 31, 2001, is DENIED.