Local Rule L.R. 2016-1: Compensation of Professionals.

L.R. 2016-1 - Compensation of Professionals. A. Disclosure of Compensation and Pre-petition Retainers. Pursuant to Bankruptcy Code § 329 and Fed. R. Bankr. P. 2016(b), an attorney representing a debtor in a case under any chapter should file with the petition a statement disclosing compensation paid or agreed to be paid to such attorney for services in contemplation of or in connection with the case. Counsel must serve the disclosure on the Trustee and United States Trustee. In Chapter 13 cases, counsel must serve only the Trustee. Until a case is closed, a supplemental fee disclosure statement must be filed and served as required in this Rule either no later than fourteen (14) days after any payment not previously disclosed in a properly filed Disclosure of Compensation for Attorney for Debtor pursuant to Fed. R. Bankr. P. 2016(b), or no later than fourteen (14) days after the agreement for such a payment. Monies received but not subsequently disclosed are subject to disgorgement. Payment of any funds to debtor's counsel and any retainer arrangement must be included in the application to employ under L.R. 2014(A).

B. Applications for Compensation. 1. Format of Application for Compensation. Except in certain Chapter 13 cases as governed by L.R. 2016-3(A) (concerning the "Flat Fee Option"), all professionals employed under Bankruptcy Code §§ 327 and 1103 must file an application for allowance of compensation following the "Guidelines for Compensation" set forth in the Procedures Manual. In a case under any chapter, applications for compensation exceeding $15,000.00 must utilize a "project billing" format. 2. Service of Applications for Compensation. Unless service is limited by Fed. R. Bankr. P. 2002(a)(6) (for limited-amount applications), by Standing Order in a Chapter 11 case, or otherwise, a professional seeking compensation or reimbursement of expenses must serve either a copy of the application or a summary of the application using Local Form 4 or Local Form 5 on the debtor (if not represented by an attorney), the debtor's attorney (if any), the Trustee, and all creditors and parties in interest. In Chapter 13 cases, a complete copy of the application must be served on the Trustee. In all other cases, a complete copy of the application must be served on the Office of the United States Trustee. Local Form 4, "Summary of Application for Compensation," must be used in any case except Chapter 11. Local Form 5, "Notice of Hearing and Summary of Application for Compensation in Chapter 11 Case," must be used in Chapter 11 cases. Any summary of the application must explain how copies of the full application may be obtained by others for review without charge.

C. Reimbursement of Expenses Reimbursement of expenses is subject to review under § 330(a). Professionals should reference the Court's Procedures Manual for details regarding the types of expenses that ordinarily will be allowed, allowed with additional explanation under § 330(a)(1)(B), and ordinarily not allowed.

D. Objections to Applications for Compensation. 1. In all Cases Except Chapter 11. In a case under any chapter except Chapter 11, any objection to an application for compensation must be filed and served no later than twenty-one (21) days after service of the application. A copy of the objection must be served on the applicant, the debtor, the debtor's attorney (if any), the Trustee (if any), the Trustee's attorney, and the United States Trustee. In Chapter 13 cases, the United States Trustee need not be served. 2. In Chapter 11 Cases. In Chapter 11 cases, any objection to an application for compensation must be filed and served no later than fourteen (14) days before the hearing on the application. A copy of the objection must be served on the applicant, the debtor, the debtor's attorney (if any), the Trustee, and the United States Trustee.

E. Hearings on Applications for Compensation. 1. Negative Notice in all Cases Except Chapter 11. In a case under any chapter except Chapter 11, hearings on applications for compensation will be held on Negative Notice pursuant to L.R. 9061. If an objection is filed, the applicant must set the application for hearing, providing twenty-one (21) days notice to the debtor, the debtor's attorney (if any), the Trustee, the United States Trustee (except in Chapter 13 cases), and any entity filing an objection. The Negative Notice of hearing and summary of application may be combined using Local Form 4, "Summary & Notice of Application for Compensation." 2. Chapter 11 Cases. In Chapter 11 cases, unless otherwise ordered, the applicant must immediately set the application for the next scheduled fee hearing and provide no less than thirty (30) days notice to all entities served with the application or summary of the application. The notice of hearing and summary of application may be combined using Local Form 5, "Notice of Hearing and Summary of Application for Compensation in Chapter 11 Case."