LBR 2016-1. COMPENSATION OF PROFESSIONAL PERSONS

LBR 2016-1. COMPENSATION OF PROFESSIONAL PERSONS

(a) Interim Fee Applications.
(1) Form of Fee Application. An application for interim fees incurred or costs advanced by an attorney, accountant or other professional person, and a trustee or
examiner must contain the following:
(A) A brief narrative history and report concerning the status of the case, including the following:
(i) Chapter 11. Applicant must describe the general operations of the debtor, stating whether the business of the debtor, if any, is being operated at a profit or loss, whether the business has sufficient operating cash flow, whether a plan has been filed, and if not, the prospects for reorganization and the anticipated date for the filing
of a plan.
(ii) Chapter 7. Applicant must report the status of administration of the estate, discussing the actions taken to liquidate property of the estate, the property remaining to be administered, the reasons the estate is not in a position to be closed, and whether it is feasible to pay an interim dividend to creditors.
(iii) All Cases. Applicant must disclose the amount of money on handing the estate and the estimated amount of other accrued expenses of administration. At the hearing on an application for interim fees, the applicant should be prepared to supplement the application by declaration or by testimony to inform the court of the current
financial status of the debtor’s estate.
(iv) Multiple Fee Applications. If more than 1 application for interim fees in a case is noticed for hearing at the same date and time, the narrative history provided in one of the applications may be incorporated by reference into the other interim fee applications to be heard contemporaneously by the court.
(v) Exception. A fee application submitted by an auctioneer, real estate broker, or appraiser does not have to comply with subsection (A) of this rule, except that auctioneers, unless otherwise ordered by the court, must file the report required by FRBP 6004(f) prior to receiving final compensation.
(B) The date of entry of the order approving the employment of the individual
or firm for whom payment of fees or expenses is sought, and the date of the last fee application for the professional.
(C) A listing of the amount of fees and expenses previously requested, those
approved by the court, and how much has been received.
(D) A brief narrative statement of the services rendered and the time expended
during the period covered by the application.
(E) Unless employment has been approved on a fixed fee, percentage fee, or
contingent fee basis, the application must contain a detailed listing of all time spent by the professional on matters for which compensation is sought, including the following:
(i) Date service was rendered.
(ii) Description of service. It is not sufficient to merely state “Research,” “Telephone Call,” “Court Appearance,” etc. Applicant must refer to the particular person, motion, discrete task performed, and other matters related to such service. A summary that lists a number of services under only 1 time period is not satisfactory.
(iii) Amount of time spent. A summary is not adequate. Time spent must be accounted for in tenths of an hour and broken down in detail by the specific task performed. Lumping of services is not satisfactory.
(iv) Identification of person who rendered service. If more than 1 person’s services are included in the application, applicant must identify the person who performed each item of service.
(F) An application that seeks reimbursement of actual and necessary expenses
must include a summary listing of all expenses by category (i.e., long distance telephone, photocopy costs, facsimile charges, travel, messenger and computer research). As to each unusual or costly expense item, the application must state:
(i) The date the expense was incurred;
(ii) A description of the expense;
(iii) The amount of the expense; and
(iv) An explanation of the expense.
(G) Unless employment has been approved on a fixed fee, percentage fee, or
contingent fee basis, the application must contain a listing of the hourly rates charged by each person whose services form a basis for the fees requested in the application. The application must contain a summary indicating for each attorney by name:
(i) The hourly rate and the periods each rate was in effect;
(ii) The total hours in the application for which compensation is sought;
and
(iii) The total fee requested in the application.
(H) A description of the professional education and experience of each of the
individuals rendering services, including identification of the professional school attended, year of graduation, year admitted to practice, publications or other achievements, and explanation of any specialized background orexpertise in bankruptcy-related matters.
(I) If the hourly rate has changed during the period covered by the application,
the application must specify the rate that applies to the particular hours for which compensation is sought.
(J) A separately filed declaration from the client indicating that the client has
reviewed the fee application and has no objection to it. If the client refuses to provide such a declaration, the professional must file a declaration describing the steps that were taken to obtain the client’s declaration and the client’s response thereto.
(K) A statement that the applicant has reviewed the requirements of this rule and that the application complies with this rule.
(2) Notice of Interim Fee Application and Hearing.
(A) In all cases where the employment of more than one professional person has been authorized by the court, a professional person who files an application for interim fees must give other professional persons employed in the case not less than 45 days notice of the date and time of the hearing. The notice of hearing must further state:
“Other professional persons retained pursuant to court approval may also seek approval of interim fees at this hearing, provided that they file and serve their applications in a timely manner. Unless otherwise ordered by the court, hearings on interim fee applications will not be scheduled less than 120 days apart.”
(B) Applicant must serve not less than 21 days notice of the hearing on the debtor or debtor in possession, the trustee (if any), the creditors’ committee or the 20 largest unsecured creditors if no committee has been appointed, any other committee appointed in the case, counsel for any of the foregoing, the United States trustee, and any other party in interest entitled to notice under FRBP 2002. The notice must identify the professional person requesting fees, the period covered by the interim application, the specific amounts requested for fees and reimbursement of expenses, the date, time and place of the hearing, and the deadline for opposition papers.
(C) In addition to the notice, a copy of the application, together with all supporting papers, must be served on the debtor or debtor in possession, the trustee (if any), any committee appointed in the case, counsel for any of the foregoing, and the United States trustee. A copy of the complete application must also be promptly furnished upon specific request to any other party in interest.
(3) Objections. Any opposition or other responsive paper by the United States trustee or other party in interest must be served and filed at least 14 days prior to the
hearing in the form required by LBR 9013-1(f).
(b) Motions to Approve Compensation Procedures in Chapter 11 Cases, Including
Monthly Draw-down and Contingency or Success Fee Agreements. A professional
person employed in a chapter 11 case may request approval for and modifications of drawdown procedures and an order allowing payment of interim compensation more frequently than once every 120 days.
(c) Final Fee Application.
(1) Who Must File. The trustee, if any, and each professional person employed in the
case must file a final fee application.
(2) Contents. An application for allowance and payment of final fees and expenses
must contain the information required of an interim fee application under LBR 2016-1(a)(1).
(3) When Filed; Notice Required in Chapter 11 Cases.
(A) Unless otherwise ordered by the court, a final fee application by the trustee,
if any, and each professional person employed in a chapter 11 case must be filed and set for hearing as promptly as possible after confirmation of a plan.
(B) A final fee application must cover all of the services performed in the case,
not just the last period for which fees are sought, and must seek approval of all prior interim fee awards.
(C) Applicant must serve not less than 21 days notice of the hearing on the debtor or debtor in possession, the trustee (if any), any committee appointed in the case, counsel for any of the foregoing, the United States trustee, and any other party in interest entitled to notice under FRBP 2002. The notice must identify the person or entity requesting a final allowance of fees and expenses, the period covered by the final application, the specific amounts requested for fees and reimbursement of expenses, the date, time and place of the hearing, and the deadline for opposition papers.
(D) In addition to the notice, a copy of the application, together with all supporting papers, must be served on the debtor or debtor in possession, the trustee (if any), any committee appointed in the case, counsel for any of the foregoing, and the United States trustee. A copy of the complete application must also be promptly furnished upon specific request to any other party in interest.
(4) When Filed; Notice Required in Chapter 7 Cases.
(A) A chapter 7 trustee must give at least 30 days written notice of intent to file
a final report and account to the attorney for the debtor, the trustee’s attorney and accountant, if any, and any other entity entitled to claim payment payable as an administrative expense of the estate.
(B) A professional person seeking compensation must file and serve an application for allowance and payment of final fees and expenses on the trustee within 21 days of the date of the mailing of the trustee’s notice. The failure to timely to file an application may be deemed a waiver of compensation.
(C) All final fee applications by professional persons must be set for hearing with the chapter 7 trustee’s final application for allowance and payment of fees and expenses. Notice of a final fee application must be given by the chapter 7 trustee as part of the notice of the hearing on the trustee’s request for compensation. A separate notice by the applicant is not required.
(5) Objections. Any opposition or other responsive paper by the United States trustee or other party in interest must be served and filed at least 14 days prior to the
hearing in the form required by LBR 9013-1(f).
(d) Fee Examiner. The court may, either sua sponte or on the motion of a party in interest, exercise its discretion to appoint a fee examiner to review fee applications and make recommendations to the court for approval.
Attorney Consultation!! $99 Retainer Fee!! Free Bankruptcy Evaluation
Motivation Bills Assets Budget
The law varies from state-to-state — please provide your zip code!

Why are you considering bankruptcy? (select all that apply)









Motivation Bills Assets Budget

What bills do you have? (select all that apply)








Motivation Bills Assets Budget
Do you own real estate ?
If Yes , are you behind in these payments?


Do you own an automobile ?
If Yes , are you behind in these payments?


Do you have any additional assets worth more than $1000.00?
Motivation Bills Assets Budget

What types of income do you have? (select all that apply)






$
Contact Info Your Evaluation

Call For A Consultation

toll free: 1-866-447-8460