Compensation for Services Rendered; Reimbursing Expenses

U.S Code last checked for updates: Jan 30, 2025

Rule 2016.

(a)

In General.

(1)

Application. If an entity seeks from the estate interim or final compensation for services or reimbursement of necessary expenses, the entity must file an application showing:

(A)

in detail the amounts requested and the services rendered, time spent, and expenses incurred;

(B)

all payments previously made or promised for services rendered or to be rendered in connection with the case;

(C)

the source of the paid or promised compensation;

(D)

whether any previous compensation has been shared;

(E)

whether an agreement or understanding exists between the applicant and any other entity for sharing compensation for services rendered or to be rendered in connection with the case; and

(F)

the particulars of any compensation sharing or agreement or understanding to share, except with a member or regular associate of a law or accounting firm.

(2)

Application for Services Rendered or to be Rendered by an Attorney or Accountant. The requirements of (a) apply to an application for compensation for services rendered by an attorney or accountant, even though a creditor or other entity files the application.

(3)

Copy to the United States Trustee. Except in a Chapter 9 case, the applicant must send a copy of the application to the United States trustee.

(b)

Disclosing Compensation Paid or Promised to the Debtor’s Attorney.

(1)

Basic Requirements. Within 14 days after the order for relief—or at another time as the court orders—every debtor’s attorney (whether or not applying for compensation) must file and send to the United States trustee the statement required by § 329. The statement must:

(A)

show whether the attorney has shared or agreed to share compensation with any other entity; and

(B)

if so, the particulars of any sharing or agreement to share, except with a member or regular associate of the attorney’s law firm.

(2)

Supplemental Statement. Within 14 days after any payment or agreement to pay not previously disclosed, the attorney must file and send to the United States trustee a supplemental statement.

(c)

Disclosing Compensation Paid or Promised to a Bankruptcy-Petition Preparer.

(1)

Basic Requirements. Before a petition is filed, every bankruptcy-petition preparer for a debtor must deliver to the debtor the declaration under penalty of perjury required by § 110(h)(2). The declaration must:

(A)

disclose any fee, and its source, received from or on behalf of the debtor within 12 months before the petition’s filing, together with all unpaid fees charged to the debtor;

(B)

describe the services performed and the documents prepared or caused to be prepared by the bankruptcy-petition preparer; and

(C)

be filed with the petition.

(2)

Supplemental Statement. Within 14 days after any later payment or agreement to pay not previously disclosed, the bankruptcy-petition preparer must file a supplemental statement.

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Mar. 27, 2003, eff. Dec. 1, 2003; Mar. 26, 2009, eff. Dec. 1, 2009; Apr. 2, 2024, eff. Dec. 1, 2024.)