§2176 — Title 48 Territories and Insular Possessions | U.S. Code

Summary

A court can approve payment to professionals hired by the debtor, the Oversight Board, a committee under section 1103 of title 11, or a court-appointed trustee under section 926 of title 11 after notice to interested parties and the United States Trustee and a hearing. The court may allow reasonable pay for the real, necessary work done by the professional and any support staff, and must repay actual, necessary expenses. The court can cut fees below what was requested. It must look at factors like time spent, rates charged, whether the work was needed or helpful when done, how quickly it was done given the task’s complexity, the professional’s special skill or certification in restructuring, and usual fees charged by similar experts. The court must not pay for needless duplicate work or for services unlikely to help the debtor or unnecessary to run the case. Any interim payments under section 2177 are subtracted from the final award, and excess interim payments may have to be returned. Fees for preparing a fee request must match the skill level needed.

Title 48, §2176

Territories and Insular Possessions — Source: USLM XML via OLRC

(a)After notice to the parties in interest and the United States Trustee and a hearing, the court may award to a professional person employed by the debtor (in the debtor’s sole discretion), the Oversight Board (in the Oversight Board’s sole discretion), a committee under section 1103 of title 11, or a trustee appointed by the court under section 926 of title 11—

(1)reasonable compensation for actual, necessary services rendered by the professional person, or attorney and by any paraprofessional person employed by any such person; and

(2)reimbursement for actual, necessary expenses.

(b)The court may, on its own motion or on the motion of the United States Trustee or any other party in interest, award compensation that is less than the amount of compensation that is requested.

(c)In determining the amount of reasonable compensation to be awarded to a professional person, the court shall consider the nature, the extent, and the value of such services, taking into account all relevant factors, including—

(1)the time spent on such services;

(2)the rates charged for such services;

(3)whether the services were necessary to the administration of, or beneficial at the time at which the service was rendered toward the completion of, a case under this chapter; 11 See References in Text note below.

(4)whether the services were performed within a reasonable amount of time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed;

(5)with respect to a professional person, whether the person is board certified or otherwise has demonstrated skill and experience in the restructuring field; and

(6)whether the compensation is reasonable based on the customary compensation charged by comparably skilled practitioners in cases other than cases under this subchapter or title 11.

(d)The court shall not allow compensation for—

(1)unnecessary duplication of services; or

(2)services that were not—

(A)reasonably likely to benefit the debtor; or

(B)necessary to the administration of the case.

(e)The court shall reduce the amount of compensation awarded under this section by the amount of any interim compensation awarded under section 2177 of this title, and, if the amount of such interim compensation exceeds the amount of compensation awarded under this section, may order the return of the excess to the debtor.

(f)Any compensation awarded for the preparation of a fee application shall be based on the level and skill reasonably required to prepare the application.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (c)(3), was so in the original, but probably should have been a reference to “this title”, meaning title III of Pub. L. 114–187, June 30, 2016, 130 Stat. 577, which is classified generally to this subchapter. Pub. L. 114–187 does not contain chapters.

§2176 Compensation of Professionals

Summary

Title 48, §2176

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata