Local Rule 2014-1: Employment of Estate Professionals.

Rule 2014-1. Employment of Estate Professionals.

(a) Application: content and service. An application to employ an estate professional under Fed.R.Bankr.P. 2014(a) shall be signed by the trustee, debtor in possession, or committee chairperson and any attorney for the trustee, debtor in possession, or committee and, in addition to the particular information and the supporting verified statement by the professional to be employed required by Fed.R.Bankr.P. 2014(a), shall set forth the particular subsection or subsections of 11 U.S.C. § 327 under which authority for the employment is sought. If the proposed fee agreement with the professional to be employed includes the reimbursement of expenses, the application shall identify any unusual expenses anticipated and estimate the cost. If an effective date of employment other than the date the application is filed is sought, the application shall set forth the specific effective date of employment sought and the cause therefor. No service of the application is required other than the electronic service on the United States Trustee made by the Clerk.

(b) Nondisclosure of possible litigants. If a trustee, debtor in possession, or committee wishes to employ an attorney to commence litigation to recover money or property for the estate or to employ an attorney, accountant, or other estate professional to conduct an investigation, the application filed under Fed.R.Bankr.P. 2014(a) need not disclose the name of any party to such litigation or investigation, other than the applicant. In that event, the trustee, debtor in possession, or committee shall submit to the United States Trustee a separate statement disclosing such additional information as may be necessary for the United States Trustee to complete its review and comment to the Court.

(c) Comments by the United States Trustee. Within seven days after an application to employ an estate professional is filed with the Court, the United States Trustee shall file any comments regarding the application, retain in its file any separate statement submitted by the applicant under paragraph (b) above, and serve upon the applicant a copy of any comments filed with the Court.

(d) Hearing. If the United States Trustee does not file any comments before the expiration of the seven days provided in paragraph (c) above, the Court may, in its discretion and subject to any limitations imposed by Fed.R.Bankr.P. 6003(a), enter an appropriate order on the application, without further notice or hearing. If the United States Trustee files comments before the expiration of the seven days provided in paragraph (c) above, the Court may, in its discretion and subject to any limitations imposed by Fed.R.Bankr.P. 6003(a), enter an appropriate order on the application or set the application for hearing.

(e) Effective date of employment. Unless the Court orders otherwise, upon the entry of an order approving the employment of an estate professional, the employment is deemed effective as of the date the original application to employ was filed with the Court.

REFERENCES: 11 U.S.C. § 327; Fed.Rs.Bankr.P. 2014 and 6005.

Practice Pointers: The party filing an application to employ an estate professional does not need to submit a proposed order. If the application is granted, a docket text order will be entered. If the application is denied, the Court will prepare the order.

In most situations, a chapter 13 debtor does not need court authority before hiring an attorney or other professional, though such professional's fees are subject to court approval.