Local Rule 2016-1: COMPENSATION OF PROFESSIONALS
Bankr. D. Vt. — General rule
RULE 2016-1. COMPENSATION OF PROFESSIONALS.
(a) Fee Application Guidelines.
(1) Except as set forth in subparagraph (2) below, any entity seeking interim or final compensation for professional services rendered, or for reimbursement of expenses, must comply with (A) Bankruptcy Rule 2016, (B) 28 C.F.R. Appendix A to Part 58, Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. § 330 ("United States Trustee Guidelines"), and (C) applicable case law. See also Local Rule 6005-1(e).
(2) When the debtor's petition lists $50 million or more in assets and $50 million or more in liabilities, any entity seeking interim or final compensation for professional services rendered must comply with (A) Bankruptcy Rule 2016, (B) 28 C. F. R. Appendix B to Part 58, Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. § 330 by Attorneys in Larger Chapter 11 Cases ("United States Trustee Guidelines for Larger Cases"), and (C) applicable case law.
(b) Applications for Compensation of $1,000 or Less. When a professional seeks compensation in an amount equal to or less than $1,000, the professional must file an application for compensation on 14 days' notice to the United States Trustee. Such applications, whether made directly by a professional or on behalf of a professional, must include the professional's name, complete mailing and street addresses, telephone number, and e-mail address. The Court will consider the application ripe for ruling on the earlier of (1) the filing of a response by the United States Trustee, or (2) the expiration of the 14-day notice period. No hearing shall be set on the application unless the Court deems a hearing is necessary.
(c) Applications for Compensation Greater than $1,000. Professionals seeking compensation in an amount greater than $1,000 must file a motion and may use the default procedure described in Local Rule 9013-4. See Local Rule 9013-4(b)(7).
(d) Certification Required. Whenever a trustee or debtor (or, in a corporate case, the appropriate officer of the debtor) seeks approval of fees for a professional, they must specify in the application (or in a separate certification) that they have reviewed and support the application for fees as filed or, if they oppose the application to any extent, state the factual and legal basis for their objection(s). When a professional other than one retained by a debtor or trustee (e.g., a professional retained by an official or unofficial committee) seeks compensation from the estate, the executive officer or chairperson of the retaining entity must file a statement supporting or opposing the application.
(e) Retainers. In a chapter 11 or 12 case, a professional may not draw down or take a payment from a retainer until the professional has an order of the Court authorizing the professional to do so, notwithstanding any agreements to the contrary between a debtor and the debtor's professionals.
(f) Requirement to File Fee Applications. The Court, in the exercise of its discretion, may order a debtor's attorney to file a fee application in any case and may direct disgorgement of all or part of the fee if the Court finds the fee to be unreasonable or paid in violation of the Code, Bankruptcy Rules, or these Rules. See 11 U.S.C. § 329.
(g) Real Estate Brokers. If approved in a retention order, a real estate broker may be paid the customary commission at closing, as defined in Local Rule 6004-1(e)(4), subject to disgorgement in the event the Court determines the commission is unreasonable under the particular circumstances of the case or the estate is administratively insolvent.
(h) Scope of Duties to be Performed by Debtor's Attorney for Flat Fee Charged. Except as provided in subparagraph (h)(4) and paragraph (i) below, the flat fee charged by a chapter 7 or 13 debtor's attorney shall include the following services:
(1) In both chapter 7 and 13 cases:
(A) analyzing the prospective debtor's financial situation, and advising and assisting the prospective debtor in determining whether to file a petition under the Bankruptcy Code;
(B) preparing and filing the petition and all required lists, schedules, and statements,
(C) filing the certificate received by the debtor from an approved nonprofit budget and credit counseling agency for pre-petition credit counseling;
(D) filing the debtor's payment advices together with Local Form B, "Payment Advices Cover Sheet";
(E) representing the debtor at the first meeting of creditors and any duly convened subsequent meetings of creditors;
(F) amending lists, schedules, statements, and/or other documents required to be filed with the petition to reflect developments that occurred during the course of the case;
(G) where appropriate, preparing and filing motions under § 522(f) to avoid liens on exempt property,
(H) where appropriate, preparing and filing motions for abandonment or to clear title to the debtor's real property;
(I) terminating garnishments, trustee process or wage assignments;
(J) compiling and forwarding to the case trustee documents required by § 521 and Local Rule 4002-1; and
(K) preparing and filing a Debtor's Certification About a Financial Management Course.
(2) In addition to the tasks identified in subparagraph (1) above, in each chapter 7 case, where warranted by the facts of the case, the duties the retained attorney must perform in consideration of the flat fee also include:
(A) filing a motion to waive the chapter 7 filing fees;
(B) negotiating, preparing, and filing reaffirmation agreements; and
(C) preparing and filing motions under § 722 to redeem exempt personal property from liens.
(3) In addition to the tasks identified in subparagraph (1) above, in each chapter 13 case, where warranted by the facts of the case, the duties required of the retained attorney also include:
(A) attending confirmation hearings and addressing all objections to confirmation;
(B) filing a valuation motion in accordance with Bankruptcy Rule 3012, where a debtor seeks to modify the amount of a secured claim pursuant to § 506(a), and, where necessary, introducing evidence as to the value of the collateral securing the subject claim (typically at or in connection with the confirmation hearing);
(C) where warranted, preparing and filing a motion to strip a wholly unsecured mortgage under § 506; and
(D) preparing and filing a motion for entry of the discharge order.
(4) Applications to Limit the Scope of Legal Services in Certain Pro Bono and Reduced Fee Cases. Where a debtor is represented by an attorney retained through Legal Services Vermont, on either a pro bono or reduced fee arrangement, the attorney may file an application to limit the scope of employment and reduce the scope of legal services to exclude certain items enumerated in subparagraphs (h)(1) – (3) above. A debtor's attorney seeking this relief must file the application within 21 days of the filing of the petition, and must serve it on the debtor, case trustee, Legal Services Vermont, and the United States Trustee.
(i) Unbundled Legal Services. In a chapter 7 case, the Court will allow unbundled legal services with respect to a filing fee waiver application when:
(1) Legal Services Vermont has referred, and an attorney has accepted, a case for pro bono or reduced fee legal representation;
(2) the Court has set a hearing on the debtor's application for waiver of the chapter 7 filing fee in that case; and
(3) a representative from Legal Services Vermont is willing to appear at the hearing to represent the debtor with respect to the debtor's eligibility for a fee waiver.