Application for Compensation and/or Reimbursement of Expenses Pursuant to Sec. 330

General Information

• Upon receipt of the Application, the Court may issue to the debtor, the trustee and all parties in interest at least 21 days notice of the request or set a hearing by electronic notification or via United States mail which will identify the applicant and the amounts requested if the application exceeds $1000. If the party has been employed and the amount is under $1000, the Court may enter the order without hearing or notice. On its own motion or the motion of any party in interest at any time prior to the closing of the case, the Court may order a hearing to review any fee paid or to be paid.

• Limited Appearances for the debtor do not require an application to employ or an application for compensation. Attorneys who appear as local counsel at the first meeting of creditors or who handle a hearing as local counsel are not required to file an appearance unless they wish to file a pleading (or if they wish to receive notices in the case). Local counsel for a debtor is required to file a disclosure of compensation, if counsel is getting paid.

In Chapter 13 Cases:

•  Counsel for the Chapter 13 debtor need not file an application to be employed. Counsel may seek approval for fees up to $4000 without filing a detailed application if: (a) an executed copy of the Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys has been filed,   (b) no objection to the requested fees has been raised; and (c) a proof of claim has been filed with the Court by debtor’s counsel and served upon trustee.  Otherwise, counsel must file an application for compensation in accordance with the Code and Rules.

• If the plan provides that all of a tort or contract claim remains property of the estate, the trustee is expected to file the application to employ special counsel. The trustee will also file an application seeking Court approval of any compromise or settlement of the claim, and a separate application to set the compensation awarded to special counsel. Otherwise, if only a portion of the net settlement of the claim will be paid into the plan, then it is the responsibility of the debtor/debtor’s counsel to employ special counsel. The Court will not have to approve the settlement nor compensation of the special counsel.  

In Chapter 11 Cases:

• At the time of filing the Employment Application, a debtor and a proposed professional may obtain approval of the Court to draw down a retainer paid by the debtor to the Professional. Otherwise, an entity seeking interim compensation for services, or reimbursement of necessary expenses, from the estate shall file an application setting forth a detailed statement and seeking compensation/expenses. Even if draw on the retainer has been authorized, a final application for fees and expenses at the end of the case is expected.

When not to use this event:

• If you are seeking reimbursement of an expense that was incurred in connection with this case and are not employed by an Order of the Court, you would need to file an application using the Application for Payment of Administrative Expenses.

• If you were employed and  were awarded compensation by court order and did not receive payment, you would also need to use Application for Payment of Administrative Expenses to obtain a specific Court Order directing payment.

Requirements:

• Professionals are usually employed by the Trustee, Debtor-in-Possession or Creditor’s  Committee and these parties would file an application for authority to receive compensation for services and reimbursement for expenses.  An application to employ should have been filed and approved by the Court before payment is sought to pay professionals. The only parties who are exempt from filing Applications for Employment are Chapter 7 & 13 Trustees and Debtor’s Counsel in Chapter 7 & 13 Cases.

• The application must identify professional, services rendered, time expended and expenses incurred.

• The Application cannot contain a request for compensation for more than one entity. Separate applications must be filed.

• The amounts requested must be clearly stated within the motion.

Note: Applications for Employment should be filed and approved prior to seeking compensation. Employment and compensation cannot be filed in a unified application. A separate pleading must be filed addressing each request.

• If counsel for a chapter 13 debtor is seeking fees greater than $4000, the application must be accompanied by time records supporting the additional fees or by an affidavit explaining why the standard fee is inadequate in the case. An affidavit must also be included if seeking more than the standard 50% of the unpaid fee balance on cases dismissed or converted prior to confirmation of a plan.

Step by Step Instructions:

1. Log into CM/ECF

2. Select Bankruptcy > Motions,  Applications &  Briefs

3. Enter the case number (in the format xx-xxxxx) and click Next

4. Select Compensation and/or Reimbursement of Expenses Pursuant to Sec. 330, Application for from the event list. Click Next

5. Select appropriate radio button to indicate whether or not the Motion you are filing is amended.

6. Check box if jointly filing with another attorney, click Next.

7. If you indicated that you are filing jointly with other attorney(s), select additional attorney(s) and click Next

NOTE: You cannot add attorneys. Only attorneys who have previously entered an appearance will be available for selection.

8. Select the party filer.  If the party is not listed, click on Add/Create New Party. Click Next

Note: The "Attorney/Party Association” screen may appear. If your party selection was correct, check the box to create an association and click Next.

9. Browse to select the Motion (pdf file).  Click Next

10. Click Next

11. All parties that are employed on this case are shown on this screen:

If any of the parties who are seeking compensation are not listed, please review docket to ensure they have been previously employed. If they have not, see procedure for Applications to Employ

If the party is shown:  Enter the type and amounts for fees and expenses. Check the Party is not receiving compensation box for any parties that are not seeking payment. Leave the Fee request box blank for that party - do not enter a zero.

12. If you indicated in step 5 that you are filing an amended motion, all pending motions on the docket are displayed. Select the motion that is being amended and click Next

13. Enter additional text, if desired, and/or select prefix text and click Next

Note: The prefix text option is not available if you indicated in Step 5 that the Motion you are filing is amended. The additional text option is not always available.

14. Verify final docket text. If correct, click Next to submit and to review Notice of Electronic Filing.

Curing a Deficient Filing:

If the Application is deficient: A new Application, fixing deficient items, must be filed prior to the deficiency deadline using the above procedure or your original filing may be stricken by the court.

Orders:

Order must be supplied and uploaded by the moving party at the time of filing of the Application.