Local Rule 2016-1: Compensation of Professionals

L.R. 2016-1 – Compensation of Professionals. A. Disclosure of Compensation and Pre-Petition Retainers. Pursuant to Section 329 of the Bankruptcy Code and Rule 2016(b) of the Federal Rules of Bankruptcy Procedure, an attorney representing a debtor in a case under any chapter shall 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 shall serve the disclosure on the Trustee and United States Trustee. In chapter 13 cases, counsel shall serve only the Trustee. Until a case is closed, a supplemental fee disclosure statement shall be filed and served as required in this Rule either no later than 14 days after any payment not previously disclosed in a properly filed Disclosure of Compensation for Attorney for Debtor pursuant to Rule 2016(b) of the Federal Rules of Bankruptcy Procedure, or no later than 14 days after the agreement for such a payment. Monies received but not subsequently disclosed are subject to disgorgement.

B. Applications for Compensation. Except in flat fee chapter 13 cases as governed by the Chapter 13 Procedures Manual, all professionals employed under Sections 327 and 1103 of the Bankruptcy Code shall file an application for allowance of compensation following the guidelines in In re Weidau's, Inc., 78 B.R. 904 (Bankr. S.D. Ill.1987). Applications for compensation may be denied if the professional seeking compensation has failed to obtain an order approving employment.