§2178 Disclosure by Professional Persons Seeking Approval of Compensation Under Section 2176 or 2177 of This Title

Summary

Requires certain professionals (like lawyers, accountants, appraisers, auctioneers, agents, and similar helpers) who work on a case that began under section 2164 to file a verified written statement before asking the court for pay under sections 2176 or 2177. The statement must follow rule 2014(a) and list any connections to people or groups on the List of Material Interested Parties. The professional must quickly update the statement if new related information appears. If they fail to file or update, or the court finds the statement was not a good-faith effort, they must say so in any later required filings. The Oversight Board must create the List of Material Interested Parties within 30 days after January 20, 2022, with court approval and a chance for the United States trustee or other parties to be heard. The List includes the debtor, creditors, other parties in interest, their attorneys or accountants, the United States trustee and staff, and Oversight Board members and staff, though the court can leave off people with claims below a set dollar threshold. The United States trustee will review the disclosed statements and may comment or object to fee requests that do not meet these rules. The court can deny payment or expense reimbursement if a professional failed to file or filed an inadequate statement, is not a disinterested person (a legal term defined elsewhere) relative to someone on the List, or represents or holds an adverse interest in the case.