Local Rule 2016-1: COMPENSATION OF PROFESSIONALS

BANKRUPTCY LOCAL RULE 2016-1 COMPENSATION OF PROFESSIONALS

(a) Application Requirements. Unless these rules provide otherwise, an application for compensation for services or reimbursement of expenses under § 330, 331, or 503(b)(4) must include the following:

(1) the information about the applicant and the application, case status, project billing, and actual, necessary expenses as set forth in the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. § 330, contained in:

(A) Appendix A – Guidelines for Reviewing Applications for Compensation filed under 11 U.S.C. § 330 in (1) larger chapter 11 cases by those seeking compensation who are not attorneys, (2) all chapter 11 cases below the larger case thresholds, and (3) cases under other chapters of the Bankruptcy Code (except that the project billing format is required only if the professional's compensation is anticipated to exceed $10,000); and

(B) Appendix B – Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. § 330 for Attorneys in Larger Chapter 11 Cases (including Exhibits A – E).

(2) a summary sheet substantially conforming to the local form (Compensation Summary Sheet [GUB 2016-1a]);

(3) detailed time records unless the professional is an auctioneer, real estate agent, or other professional whose compensation is based on a commission percentage; and

(4) a certification by the applicant that:

(A) the applicant has reviewed the application;

(B) the amounts being requested are billed at rates no less favorable than those customarily employed by the applicant and generally accepted by the applicant's nonbankruptcy clients; and

(C) to the best of the applicant's knowledge, information, and belief, the application conforms to the U.S. Trustee's Guidelines – Appendix A and Appendix B, this rule, and any order of the court, except as specifically noted in the certification

(b) Chapter 13 Attorney Fee Guidelines. The court may issue guidelines determining presumptively reasonable fees for normal and customary services to be performed by attorneys for chapter 13 debtors. Use of the guidelines may require the filing of an agreement substantially conforming to the local form (Rights and Responsibilities of Chapter 13 Debtors and Attorneys [GUB 2016-1b]). An attorney electing to follow the guidelines may seek the allowance of compensation and reimbursement of expenses through expedited procedures provided by this rule.

(c) Allowance of Compensation as Part of Plan Confirmation. An attorney electing to follow the Chapter 13 Attorney Fee Guidelines may seek the allowance of initial fees as part of the plan confirmation process without filing a separate application. The order allowing the compensation may be included in the order confirming the plan unless the debtor's attorney has failed to file the agreement describing the rights and responsibilities of Chapter 13 debtors and attorneys or if the agreement provides for compensation inconsistent with the compensation disclosed by the attorney under FRBP 2016(b).

(d) Allowance of Compensation for Post-Confirmation Services. An attorney who elected to follow the Chapter 13 Attorney Fee Guidelines for the initial allowance of fees may seek the allowance of additional fees for certain post-confirmation services as follows.

(1) Fees Not Exceeding Amounts in Guidelines. No application for additional compensation is required if the fee amounts do not exceed the amounts specified in the Chapter 13 Attorney Fee Guidelines and:

(A) no later than 14 days after payment or an agreement to pay the fees directly to the attorney by the debtor or a third party, the attorney files a supplemental disclosure statement substantially conforming to the local form (Supplemental Disclosure of Compensation by Attorney for Chapter 13 Debtor [GUB 2016- 1c1]), disclosing the amount of additional compensation paid or to be paid and certifying that the fees requested do not exceed the maximum amounts in the guidelines; or

(B) the attorney requests payment through plan distributions by filing a request for payment of an administrative expense substantially conforming to the local form (Request for Payment of Administrative Expense: Compensation for Debtor's Attorney in Chapter 13 Case [GUB 3070-2a2]), including a certification that the fees requested do not exceed the maximum amounts in the guidelines.

(2) Fees Exceeding Amounts in Guidelines. If the fees being requested exceed the amounts in the guidelines, or if the particular services are not addressed by the guidelines, an attorney whose initial fees were allowed by the plan confirmation order may request the allowance of additional compensation by filing and serving on the Trustee, the Office of the United States Trustee, and all creditors, an application substantially conforming to the local form (Application for Additional Fees in Chapter 13 Case; Notice of Hearing [GUB 2016-1c2]), attaching detailed billing records for the subject services, and arranging for a hearing in accordance with BKLR 9013-1(e).

(e) Payment of Compensation. Unless the court orders otherwise, a debtor's attorney in a chapter 13 case may accept post-petition payments for compensation only:

(A) through plan distributions;

(B) as provided in item (d) of this rule; or

(C) from funds deposited in a client trust account as authorized by a court order.

BKLR 2016-1 Related Local Forms: ● Chapter 13 Attorney Fee Guidelines ● Rights and Responsibilities of Chapter 13 Debtors and Attorneys [GUB 2016-1b] ● Supplemental Disclosure of Compensation by Attorney for Chapter 13 Debtor [GUB 2016-1c1] ● Request for Payment of Administrative Expense: Compensation for Debtor's Attorney in Chapter 13 Case [GUB 3070-2a2] ● Application for Additional Fees in Chapter 13 Case; Notice of Hearing [GUB 2016-1c2]