Local Rule 2016-1: Compensation of Professionals

Rule 2016-1 Compensation of Professionals

(A) Attorney Fee Applications in Chapter 13 Cases.

In a chapter 13 case, whether or not fees are to be paid postpetition, an application for fees must be filed by the debtor's attorney. If the fees and expenses requested do not exceed a total of $3,500.00 in the chapter 13 case, exclusive of the filing fee, an itemization of the time and services is not required. This fee is intended to compensate counsel for all reasonable fees incurred to achieve confirmation of a chapter 13 plan, absent extraordinary circumstances. Notice of the fee application must be given in accordance with Fed. R. Bankr. P. 2002(a)(6).

In a chapter 13 case, the attorney must state in the Rule 2016(b) disclosure statement, on the cover sheet, and in the chapter 13 plan whether the attorney requests payment through the chapter 13 plan.

(B) Notice. LBR 2002-1(B) applies to all fee applications, including applications for fees requested pursuant to 11 U.S.C. § 506(b). The notice must include a time for filing objections to the application, which will be 24 days after the date on which the application is served. The applicant shall file and serve the notice, along with the cover sheet required by subsection (D)(1) of this rule, on all interested parties and attach a certificate showing service in compliance with this rule.

The applicant must serve the notice, the cover sheet required by subsection (D)(1) of this rule, and the application on the debtor or debtor in possession, and the debtor's attorney and file a certificate showing service in compliance with this rule.

If no objection to the application is filed, the Court will either enter an order on the application or set a hearing, as appropriate.

(C) Chapter 13 Fee Applications. When an application for compensation is required under section (A) of this rule, the application and cover sheet must be filed separately from the chapter 13 plan. However, the notice required by Fed. R. Bankr. P. 2002(a)(6) may be included with the chapter 13 Notice of Deadline for Filing Objections in a form in substantial compliance with Local Bankruptcy Form D.

When fees are anticipated to be paid as a claim under the chapter 13 plan, the debtor must separately state in the plan the estimated total fees in addition to the fees to be paid as a claim in the chapter 13 plan, as illustrated in Local Bankruptcy Form B.

All applications for fees filed in chapter 13 cases must be filed within 30 days after confirmation of the chapter 13 plan or entry of the order modifying a confirmed plan. Untimely applications will be summarily denied, unless supported by a statement of the applicant demonstrating cause for the delay.

(D) Format.

(1) Cover Sheet. Unless excused under section (A) of this rule, all applicants must file and serve a cover sheet in substantial compliance with Local Bankruptcy Form A along with the application.

(2) Fee Application.

a. Expenses must be itemized in detail sufficient for the Court to determine whether the expenses were reasonable and necessary, and must include the dates on which the expenses were incurred.

b. Each application must contain a clear and concise narrative which provides detail relative to the complexity of the case or matter on which the fees are requested. At a minimum, the narrative must describe: the nature of the services; the result obtained and benefit to the estate (including any monetary benefit); the remaining services to be performed and an estimate of the time and cost; and a statement regarding the feasibility of any requested interim distribution.

c. The application must be categorized in detail sufficient to the complexity of the case. The itemization must contain a description of tasks performed sufficient for the Court to determine an allowance within the requirements of 11 U.S.C. § 330 and adequate for the purpose and amount of fees for which it is submitted. The time entries must be made from records contemporaneously kept by the applicant, and each person providing services must be separately identified on every applicable entry.