Local Rule 2016–1: COMPENSATION OF PROFESSIONALS

2016–1 COMPENSATION OF PROFESSIONALS

(a) Compensation of Professionals in Chapter 11 Cases.

(1) Interim Fees for Professional Persons.

(A) Content of Application. Optional LBR Form 2016-1(a)(1)(A) is available in the Forms section of these Local Rules. An application for compensation or reimbursement of expenses shall include the following:

(i) a description of the services performed that identifies each service separately in sufficient detail to allow evaluation of the benefit derived from the service, the date each service was performed, and the time expended for each service.

(ii) the professional time expended set forth either (i) by each professional or paraprofessional in chronological order, or (ii) by day in chronological order showing all professionals or paraprofessionals that expended time on each day; and

(iii) an itemized list by category and amount of expenses for which reimbursement is sought.

(B) Privileged Information and Work Product. Should compliance with this Local Rule require disclosure of privileged information or work product, then, upon leave of the court on motion with proper notice, such information may be separately tendered for filing in camera, unless to do so would constitute an ex parte communication concerning matters before the court. If leave is given to file in camera, such materials may be omitted from the copies served on other parties and their attorneys.

(C) Notice.

(i) The application shall be accompanied by a notice specifying the identity of the professionals requesting compensation and reimbursement of expenses, the period covered by the interim application, the specific amounts requested for fees and reimbursement of expenses, and the deadline for objections. A notice that conforms substantially to LBR Form 2016–1 (a)(1)(C) satisfies the requirements of this section.

(ii) Objections to the application shall be served in accordance with LBR 9013–3 and on any party having requested copies pursuant to the Rules.

(D) Monthly Compensation and Reimbursement of Expenses. A professional may file a motion for approval of procedures permitting payment of monthly compensation and reimbursement of expenses. Optional LBR Form 2016-1(a)(1)(D) is available in the Forms section of these Local Rules.

(2) Final Fee Applications.

(A) Contents. Application for final fee awards shall contain all information required of interim fee applications under (a)(1) above.

(B) Notice. The application shall be accompanied by a notice specifying the identity of the professionals requesting compensation and reimbursement of expenses, the period covered by the final application, the specific amounts requested for fees and reimbursement of expenses, and the deadline for objections. A notice that conforms substantially to LBR Form 2016–1(a)(1)(C) satisfies the requirements of this section.

(b) Compensation of Attorneys in Chapter 13 Cases.

(1) LBR Form 2016-1(b) Required. At the time the petition is filed, and at the time of substitution of an attorney pursuant to LBR 2091-1, the debtor's attorney shall file LBR Form 2016-1(b) (Disclosure of Compensation of Attorney for Debtor and Application for Allowance of Fees in Chapter 13 Case).

(2) Initial Fee Applications.

(A) No-Look Fee. Upon confirmation of the plan, fees may be allowed up to $3,500 700 ("no-look fee") without further application or specific itemization for services rendered. The no-look fee includes the general legal services performed in a chapter 13 case listed below, whether performed preconfirmation or postconfirmation:

(i) initial client interview, preparation and signing of any retainer or representation agreement, analysis of the debtor's financial situation, and rendering advice to the debtor in determining whether, and under what chapter, to file a petition in bankruptcy;

(ii) advising the debtor concerning his or her obligations and duties pursuant to the Code, the Rules, these Local Rules, applicable court orders, and provisions of his or her chapter 13 plan;

(iii) preparation and filing of any document required by § 521 of the Code, including Official Form 122C-1 and Official Form 122C-2 (if applicable), the petition, schedules, statement of financial affairs and any amendments thereto that may be required;

(iv) preparation and filing of the chapter 13 plan, and any preconfirmation amendments thereto that may be required; provided, legal services performed relative to avoidance of wholly unsecured mortgages / liens, avoidance of judicial liens impairing an exemption in real property, or avoidance of nonpossessory, nonpurchase-money security interests in exempt property within a chapter 13 plan are not covered by the no-look fee and may be compensated through a separate application for fees; however, in such event, no additional compensation will be allowed for the preparation and filing of a motion pursuant to Rule 5009(d).

(v) preparation and filing of payroll orders and amended payroll orders, except amended payroll orders prepared in connection with the modification of a plan or the temporary suspension of payments;

(vi) representation of the debtor at the § 341 meeting of creditors and confirmation hearing, and at any adjournments thereof;

(vii) filing of address changes for the debtor;

(viii) review of claims;

(ix) review of notice of intention to pay claims;

(x) preparation and filing of objections to non-real estate and non-tax claims, exclusive of any hearings;

(xi) preparation and filing of first motion to suspend or temporarily reduce plan payments;

(xii) representation of the debtor in addressing any routine tax return or tax refund inquiries by the trustee, exclusive of any motion, objection, or hearing;

(xiii) filing of a notice of final cure payment, when filed by the debtor, exclusive of any hearings;

(xiv) preparation and filing of debtor's certification regarding issuance of discharge order;

(xv) routine phone calls and questions;

(xvi) file maintenance and routine case management; and

(xvii) any other duty as required by local decision or policy.

The amount of the no-look fee may be changed from time to time by general order.

(B) Order Allowing No-Look Fee. The amount of the initial fee allowed to the debtor's attorney may be specified in the confirmation order. No separate order allowing the fee is necessary.

(C) No-Look Fee Opt Out. The debtor's attorney may opt out of the no-look fee by filing an application for allowance of fees that includes an itemization of all legal services performed, the amount of the total fee requested, the amount and itemization of any expenses for which reimbursement is sought, the identification and hourly billing rate of any attorney, paralegal or other professional person for whom fees are sought, and the actual time spent by the attorney, paralegal, or other professional person for whom fees are sought. The application must be filed no later than sixty (60) days from the entry date of the confirmation order. If the request exceeds the amount set forth in Rule 2002(a), the debtor, the United States trustee, the trustee, and all creditors and parties in interest shall be served.

(3) Additional Attorney Fees. Additional attorney fees for services performed by the debtor's attorney beyond those set forth in (b)(2)(A) or (b)(2)(C) above must be requested by separate application and shall be filed no later than six (6) months after completion of the services for which compensation is sought.

(A) Application Contents. The application shall include:

(i) a description of the legal services performed and by whom the services were performed;

(ii) the results obtained by the legal services;

(iii) the amount and itemization of expenses for which reimbursement is sought, the identification and hourly billing rate of any attorney, paralegal, or professional person for whom fees are sought, and the actual time spent by the attorney, paralegal, or other professional person for whom fees are sought;

(iv) a statement that no previous application has been made for the services for which the application is made;

(v) the proposed percentage payment to unsecured creditors; and

(vi) the amount of fee requested.

(B) Service. If the request exceeds the amount set forth in Rule 2002(a), the debtor, the United States trustee, the trustee, all creditors and parties in interest shall be served.

(4) Separate Application. Other than LBR Form 2016-1(d)(b) (Disclosure of Compensation of Attorney for Debtor and Application for Allowance of Fees in Chapter 13 Case), any fee application filed under this Local Rule shall not be combined with any other filing or other paper.

(5) Fees in Cases Dismissed Prior to Confirmation.

(A) Attorney Fees. The no-look fee does not apply in cases dismissed prior to confirmation. An attorney seeking payment of fees for services performed, or reimbursement of expenses, in a case dismissed prior to confirmation must file an application that includes an itemization of all legal services performed, the amount of the total fee requested, the amount and itemization of expenses for which reimbursement is sought, the identification and hourly billing rate of any attorney, paralegal, or other professional person for whom fees are sought, and the actual time spent by the attorney, paralegal, or other professional person for whom fees are sought. The fee application in a dismissed case shall be filed no later than fourteen twenty-one (1421) days after the entry of the order of dismissal.

(B) Court Filing Fee. If a bankruptcy case is dismissed with any portion of the filing fee remaining unpaid and there are estate assets to be administered by the trustee, the filing fee shall be paid from the assets of the estate

(6) Fees in Cases When Debtor's Attorney Does Not Continue to Represent Debtor.

(A) Application Required. If the debtor's attorney withdraws from a case, is terminated, or is otherwise unable to continue as the debtor's attorney, then any undistributed portion of the no-look fee set forth in (b)(2)(A) above shall be held by the trustee until further order of the court. Any such attorney seeking payment of fees must file an application that includes an itemization of all legal services performed, the amount of the total fee requested, the amount and itemization of expenses for which reimbursement is sought, the identification and hourly billing rate of any attorney, paralegal, or other professional person for whom fees are sought, and the actual time spent by the attorney, paralegal, or other professional person for whom fees are sought. The fee application shall be filed no later than thirty twenty-one (3021) days after legal representation has discontinued.

(B) Application Not Required. Upon filing of a notice of substitution as set forth in LBR 2091-1(b)(1), if the attorneys have agreed upon the disposition of the undistributed portion of the no-look fee, the parties may submit an agreed order, signed by the attorneys and the debtor, in lieu of an application for allowance of fees.

(7) Hearings. Any fee application may be set for hearing at the discretion of the court or at the request of a party in interest.

(8) Payment of Allowed Fees. This Local Rule shall be interpreted by the trustee and applied as is administratively efficient to carry out the intent that allowed attorney fees for customary and ordinary work in a case be paid within a year from the date of the confirmation order, and any additional allowed attorney fees shall be paid only after full payment of the original allowed attorney fees.