Local Rule Rule 2016-1: Approval of Fees

Rule 2016-1 Approval of Fees

(a) An Application by an Attorney or Accountant. An application by an attorney or an accountant for compensation and reimbursement under § 330 or § 331 must contain the disclosures required by F.R.Bankr.P. 2016(a), must comply with the following subparts (1)-(10), numbered as such, and must include the exhibits described in subparts (11)-(17).

(1) State separately: (A) the total amount of compensation sought to be approved; (B) the amount of expenses sought to be approved; and (C) the balance of any retainer on deposit with the applicant that remains after the payment of prior fee awards. This statement must be incorporated into the notice of the fee application served on all parties in interest.

(2) Identify the time period during which the services for which the award is sought were rendered.

(3) Provide a narrative summary explaining the services performed and how the services benefitted the estate. In addition, in a chapter 13 case, a pre-confirmation or post-confirmation fee application that requests approval of fees and expenses totaling more than $3,500.00 in that application must specifically identify the circumstances of the case that make the amount requested reasonable.

(4) Unless unduly burdensome, with respect to each adversary proceeding, state or other federal litigation or administrative proceeding in which the applicant is or was involved, describe: (A) the nature of the action instituted; (B) the relief requested; (C) the dollar amount directly or indirectly involved; (D) the issues, both factual and legal, in sufficient detail to permit the court to evaluate the problems confronting the attorney; and (E) the results obtained since the prior fee application, if any.

(5) Describe the current status of the bankruptcy case. In addition: (A) in a chapter 7 case, provide a summary of the administration of the case, including all money received and disbursed in the case, the total amount of funds in the estate, the date the case is expected to close, and whether it is appropriate to make an interim disbursement to creditors without prejudicing the rights of any creditors; (B) in a chapter 11 case, state whether all monthly operating reports have been timely filed and whether a plan has been or will be timely filed; and (C) in a chapter 13 case, state the impact on the plan resulting from approval of the fee application.

(6) Describe the nature of any professional services to be provided in the future.

(7) State the amount and nature of accrued unpaid administrative expenses.

(8) Identify each specific instance in which an award is sought for the services of more than one professional and paraprofessional and the justification for each such specific instance.

(9) State the amount of compensation sought in prior applications in the case by the applicant and the court's disposition of each application.

(10) State that: (A) the party on whose behalf the applicant is employed was given the opportunity to review the application at least seven days before filing and state the substance of the party's response; or (B) the applicant has obtained the written approval of the application from the party on whose behalf the applicant is employed prior to filing the application.

(11) Exhibit 1 must be the proposed order granting the application.

(12) Exhibit 2 must be a copy of the order approving the employment of the applicant.

(13) Exhibit 3 must be a copy of the applicant's statement under F.R.Bankr.P. 2016(b) or if none was filed, a copy of the applicant's retention agreement.

(14) Exhibit 4 must be a summary statement of the number of hours of service rendered by each professional and paraprofessional, the hourly rate of each and the blended hourly rate of the professionals not including the paraprofessionals.

(15) Exhibit 5 must be in the format required by either subpart (A) or subpart (B).

(A) This subpart (A) applies if the cumulative amount of the fee application and the applicant's prior interim fee applications is equal to or less than the following: $15,000 for an attorney or an accountant for a chapter 7 trustee; $20,000 for an attorney or an accountant for a chapter 11 debtor in possession or a chapter 11 trustee; or $5,000 for an attorney for a chapter 13 debtor. These amounts may be amended from time to time by administrative order. Exhibit 5 must be an itemized time record in chronological order, of each specific service for which an award of compensation is sought. This itemized time record must: (i) state the date each service was rendered; (ii) identify the attorney or paralegal who performed the service; (iii) describe with particularity the services rendered; and (iv) state the time spent performing the service in increments of a tenth of an hour.

(B) This subpart (B) applies if the cumulative amount of the fee application and the applicant's prior interim applications is greater than the applicable amount in subpart (A). Unless otherwise ordered by the court, exhibit 5 must comply with the United States Trustee Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses, 28 C.F.R. Part 58 Appendix A. The United States Trustee Fee Guidelines are available on the court's website. In a chapter 13 case, the project categories in the "List of Chapter 13 Project Categories for Fee Applications," available on the court's website, must be used.

(16) Exhibit 6 must be a brief biographical statement of the professional experience of each professional for whom an award of compensation is sought. This statement must include a list of all continuing professional education programs taught or attended by each professional in the two years before the application, specifying for each program the dates, the number of hours attended, the organizer and the subject or title of the program. The applicant is also encouraged to disclose for each professional any published articles and books, and any professional memberships, positions, activities, honors and board certifications.

(17) Exhibit 7 must be an itemized statement of expenses for which reimbursement is sought. For each expense, this statement must disclose its date and a description of the nature and purpose of the expense. For example, a request for mileage must include the date, the destination, the number of miles, the mileage rate and the reason for the trip.

(b) An Application Filed by a Chapter 7 Trustee or by Any Other Professional. This subpart applies to an application for compensation and reimbursement filed by a chapter 7 trustee or by a professional other than one addressed in subpart (a), including an appraiser, auctioneer, real or personal property sales broker, investment advisor or consultant. In addition to the requirements of F.R.Bankr.P. 2016(a), the application must state the manner by which the requested compensation was computed and sufficient facts for the court to determine reasonable compensation under § 330. A request for reimbursement of expenses must be supported by a statement disclosing for each expense its date and a description of the nature and purpose of the expense. Vouchers and invoices must be made available for review by the United States trustee.

(c) Compensation for a Chapter 13 Debtor's Attorney Without a Fee Application. Notwithstanding subpart (a), an order confirming plan in a chapter 13 case may award the debtor's attorney fees and expenses up to $3,500.00 in total for pre-confirmation services.

(d) Compensation for a Chapter 13 Debtor's Attorney Under a Fixed Amount. Notwithstanding subpart (a), the debtor's attorney in a chapter 13 case may file an ex parte application that seeks allowance of fees and expenses that does not exceed the amount identified in F.R.Bankr.P. 2002(a)(6) if it has the endorsed approval of the debtor and the chapter 13 trustee. If the application lacks the endorsements, the applicant must utilize Local Rule 9014-1 but notice needs to be sent only to the trustee and the debtor. The debtor's endorsement must state as follows: "I, the debtor, understand that: I do not have to sign this document unless I agree with it; I signed this document on the date stated below; When I signed this document, all the blanks were filled in; I agree that the fees and expenses requested should be allowed. Date signed: _____________ Debtor signature: ____________________"