Official Procedure Last Change November 4, 2020
Application for Compensation and/or Reimbursement of Expenses Pursuant to Sec. 330
How to file:
Location of event: Bankruptcy > Motions, Applications & Briefs > Compensation and/or Reimbursement of Expenses Pursuant to Sec. 330, Application for
- 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.
- Requests for payment of subrogation liens must not be included in an Application for Compensation - these should be addressed via a Motion to Compromise and/ or Settle under Rule 9019.
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:
- an executed copy of the Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys has been filed,
- no objection to the requested fees has been raised; and
- 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.
- Pursuant to S. D. Ind. B-2016-1, an Application for Compensation may be filed on a dismissed case in some instances.
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 his case and are not employed by an Order of the Court, you would need to file an Application for Payment of Administrative Expenses.
- If you were employed and were awarded compensation by court order and did not receive pyment, you would also need to file an Application for Payment of Administrative Expenses to obtain a specific Court Order directing payment.
- 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. Debtor’s Counsel and Trustees in Chapter 7 & 13 cases are not required to be employed by an order of the Court.
- The Application for Compensation must be filed by the same party that filed the Application to Employ, not by the professional themselves.
- The Application for Compensation cannot also include an application to employ; separate motions are required.
- The Application must identify the 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.
- If counsel for a chapter 13 debtor is seeking fees greater than $4500, 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.
- Do not include an objection deadline in the Application - the court will prepare and distribute an objection notice if one is needed.
- Filing party is responsible for uploading a proposed order.
1. Log into CM/ECF.
2. Select Bankruptcy > Motions, Applications & Briefs.
3. Enter 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 and click Next.
5. Select appropriate radio button to indicate whether or not the Motion you are filing is amended.
6. Do not select additional attorneys (trustee users) nor check the Joint filing with other attorney(s) box (all other users). Click Next.
7. If the party to receive compensation is not listed, add them. Show me how
8. Select both the party filing the Application (trustee or debtor) and the party for whom compensation is sought, as shown in the example below. (Hold down the Ctrl key while clicking to select the second 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.
10. All parties that you selected in the steps above are shown:
- For the party for whom compensation is sought, select a role from the Type drop-down list. Then, and enter an amount in the Fee request box (the amount the professional will be paid by the debtor or the estate) and an amount in the Expense request box.
- For all other parties shown, check the Party is not receiving compensation box, as shown above.
11. If this is the final Application for Compensation to be filed for the professional in this case, select the Final radio button. If a further Application is to be filed later for the same professional in this case, select Interim. Click Next.
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. Select prefix text, if applicable, 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.
14. Verify final docket text. If correct, click Next to submit.
Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.