§2176 Compensation of Professionals

Summary

The court may, after giving notice to interested parties and the U.S. Trustee and holding a hearing, award reasonable pay and reimburse actual, necessary expenses to a professional hired by the debtor (if the debtor chooses), the Oversight Board, a committee under section 1103 of title 11, or a trustee appointed under section 926 of title 11. This can include lawyers and the paraprofessionals who assist them. The court can give less than the amount asked for. To decide a fair amount, the court must look at the work’s nature, amount, and value and consider factors such as time spent, rates charged, whether the work was needed or helpful when done, whether it was completed in a reasonable time for the task’s difficulty, whether the professional is board certified or experienced in restructuring, and whether fees match what similarly skilled practitioners charge outside these cases. The court must not pay for unnecessary duplicate work or work unlikely to benefit the debtor or needed for administering the case. Any interim payments under section 2177 are subtracted from the final award, and if interim pay exceeds the final award the court may order the excess returned. Payment for preparing fee requests must match the skill reasonably needed to prepare them.