Local Rule 2014-1: EMPLOYMENT OF PROFESSIONAL PERSONS

Rule 2014-1 EMPLOYMENT OF PROFESSIONAL PERSONS

(a) Requirements.

In addition to the requirements set forth in Bankruptcy Rule 2014(a), an application for the employment of a professional person pursuant to Bankruptcy Code §§ 327, 1103 or 1114 shall state:

(i) the terms and conditions of the employment, including the terms of compensation such as whether payment will be based on an hourly or monthly fee, contingent fee or fixed fee.;

(ii) all compensation paid or promised to the professional person in contemplation of or in connection with the services to be performed, and the specific source of such compensation;

(iii) all compensation paid within the 90 days prior to the bankruptcy filing and the specific source of such compensation;

(iv) whether the professional person has previously rendered any professional services to the trustee, debtor, debtor in possession, the extent thereof and the status of the compensation therefor.

(b) Verified Statement.

In addition to the requirements set forth in Bankruptcy Rule 2014(a), the application referred to in subdivision (a) shall be accompanied by a verified statement of the person to be employed stating that such person does not hold or represent an interest adverse to the estate except as specifically disclosed therein, and where employment is sought pursuant to Bankruptcy Code § 327(a), that the professional is disinterested.

(c) Additional Requirements for Chapter 11 Cases.

In a chapter 11 case, in addition to the requirements set forth in Bankruptcy Rule 2014(a), the verified statement required to accompany an application for approval of the employment of an attorney under Bankruptcy Code §§ 327(a) or 1103 shall include a statement setting forth the attorney's qualifications and experience in handling chapter 11 cases to enable the evaluation of the attorney's competence.

(d) Employment of Accountant or Financial Advisor.

In addition to the requirements set forth in subdivisions (a) and (b), and Bankruptcy Rule 2014(a), an application seeking authorization to employ an accountant or financial advisor shall include a verified statement by an authorized representative of the accounting or financial advisory firm that sets forth:

(i) whether or not the accountant or financial advisor is a certified public accountant; and

(ii) in a chapter 11 case, the estimated cost of the accountant's or financial advisor's proposed services, the basis of such estimate and the extent to which the accountant or financial advisor is familiar with the books or accounts of the debtor.

(e) Proposed Orders.

All proposed orders and supporting documentation for employment of any professional shall be submitted to the United States trustee for review simultaneously with the filing.

CROSS-REFERENCE: E.D.N.Y. LBR 6005-1 REFERENCES: Bankruptcy Code §§ 327, 1103