Local Rule 2016-1: Retainers Held by Professionals and Chapter 11 Attorney's Fee Applications

Local Rule 2016-1 Retainers Held by Professionals and Chapter 11 Attorney's Fee Applications

(a) Professional Fee Guidelines. Professionals seeking compensation are encouraged to refer to the Guidelines for Compensation and Expense Reimbursement of Professionals posted on the court's website (www.ncwb.uscourts.gov).

(b) Retainers. In a Chapter 11 case, a retainer held by a professional shall be maintained in a trust account. The professional shall not draw against the retainer post-petition except upon order of the court approving such fees and expenses.

(c) Fees Up to Confirmation. In a Chapter 11 case, fees through confirmation should be applied for within 30 days of the end of the month in which the confirmation order is entered unless otherwise provided in the plan or confirmation order. Such fees may be the subject of an application for final determination or approval, notwithstanding the possibility that further post-confirmation fees may require approval from the court.

(d) Security Interests. Any agreements granting security interests in the debtor's property or in other property for the benefit of the debtor's attorney or any other professional employed by the debtor to secure the payment of professional fees must be fully disclosed in the petition and schedules and must be approved by the court. Retainers and security interests in non-cash assets must be approved by the court after notice and a hearing.