EMPLOYMENT OF PROFESSIONALS

Rule No: 
2014-1

 

(a)    Requirements.  Applications for the appointment of professionals shall disclose whether the professional is a pre-petition creditor of the debtor, and if so, the nature of services rendered, amount owed, whether counsel claims a security interest in property of the estate to secure fees, and identify the collateral subject to the security interest, if any.  The application shall also state whether any retainer has been paid or promised, and the anticipated method of compensation, and sources thereof, including third parties and guarantors.  Copies of any fee agreements and security interests shall be attached as exhibits.   Retainers may not be drawn from trust or compensation paid by any source absent an order approving compensation and/or reimbursement and authorizing application of the retainer.  Each application for employment shall contain a certification that the applicant has read Local Bankruptcy Rule 2016-1. 

(b)          Ex Parte Applications.  Professionals seeking appointment on an ex parte basis shall, prior to filing the application for approval to the court through the electronic case filing system or by filing an document, (1) obtain the written endorsement of the United States trustee’s Office of the application, or (2) certify that at least 7 days have passed since the application was served upon and received by the United States trustee’s office, and no objection has been made by the United States trustee’s office to the application.  For purposes of this rule, the United States trustee’s Office will accept service by facsimile or electronically at USTPRegion18.SE.ECF@usdoj.gov.  Ex parte orders authorizing the appointment of professionals do not constitute approval of the terms of any fee agreement or arrangement.  

(c)          Chapter 13 Cases.  Local Bankruptcy Rule 2014-1(a) and (b) shall not apply to general counsel for the debtor in a chapter 13 case. The rule shall apply to applications for employment of professionals submitted by the chapter 13 trustee.  All other ex parte applications for employment in a chapter 13 case shall comply with these provisions, except that the applications shall be submitted to the chapter 13 trustee’s office rather than the United States trustee’s office.