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

L.B.R. 2016-1 Compensation of Professionals.

(a) Statement Required by § 329 and Rule 2016(b).

The statement required by 11 U.S.C. § 329 and Bankruptcy Rule 2016(b) shall be filed by the attorney for the debtor within 14 days after the order for relief, whether or not the attorney seeks to be employed or compensated by the estate.

(b) Retainer Funds.

In chapter 9, 11, 12 and 13 cases, all attorneys and accountants employed by a debtor shall deposit retainer funds, whether received from the debtor or an insider of the debtor (as defined in 11 U.S.C. § 101(31)), in a trust account. Any withdrawal in a chapter 13 case from a retainer, other than for payment of filing fees, one credit report and fees paid for credit counseling required by 11 U.S.C. § 109(h)(1), to the extent that the attorney has incurred these charges, may not be made on an amount that exceeds $3,000.00, in an individual case or $3,500.00 in a business case, except after approval of a formal fee application. A retainer in a chapter 9, 11 or 12 case may be withdrawn provided the attorney or accountant complies with the following procedure:

(1) A motion for distribution of retainer shall be filed with the Bankruptcy Clerk, and a copy shall be served on:

(A) The debtor, and, if the debtor is represented by an attorney, the attorney;

(B) Any attorney for a committee appointed or elected in the case, or if no attorney has been employed to represent the committee, through service on its members; and if no committee has been appointed in a chapter 9 or 11 case, the creditors included on the list filed pursuant to Bankruptcy Rule 1007(d);

(C) The United States Trustee;

(D) Any trustee appointed in the case; and

(E) All parties requesting notice pursuant to Local Bankruptcy Rule 2002-1(j);

(2) At a minimum, the motion for distribution of retainer shall contain a Fee Application Cover Sheet, a description of services rendered, including the time spent, hourly rates charged and the name of the attorney, accountant, other professional or paraprofessional performing the work;

(3) For the purpose of distribution of retainer, this motion shall be deemed an application within the provisions of Bankruptcy Rule 2016, with the final compensation of counsel to be determined at a subsequent hearing before the court as required by Bankruptcy Rule 2016; and

(4) If no objection is filed within 14 days of the mailing thereof, said professional may withdraw funds as described in the proposal in the amounts set forth as interim allowances. Motions for distribution may not be filed more frequently than monthly, without leave of court. If an objection is received, the affected professional shall request a hearing before the court. Said hearing shall be held pursuant to Bankruptcy Rule 2017(a), and will not require preparation of a formal fee application.

(c) Fee Application Form.

At a minimum, an application for compensation shall:

(1) include a Fee Application Cover Sheet; and

(2) comply with any other applicable guidelines and court orders.