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11 U.S.C. § 327 — Employment of professional persons

Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 327 — Employment of professional persons

**(a)** Except as otherwise provided in this section, the trustee, with the court’s approval, may employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate, and that are disinterested persons, to represent or assist the trustee in carrying out the trustee’s duties under this title. **(b)** If the trustee is authorized to operate the business of the debtor under section 721, 1202, or 1108 of this title, and if the debtor has regularly employed attorneys, accountants, or other professional persons on salary, the trustee may retain or replace such professional persons if necessary in the operation of such business. **(c)** In a case under chapter 7, 12, or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor or the United States trustee, in which case the court shall disapprove such employment if there is an actual conflict of interest. **(d)** The court may authorize the trustee to act as attorney or accountant for the estate if such authorization is in the best interest of the estate. **(e)** The trustee, with the court’s approval, may employ, for a specified special purpose, other than to represent the trustee in conducting the case, an attorney that has represented the debtor, if in the best interest of the estate, and if such attorney does not represent or hold any interest adverse to the debtor or to the estate with respect to the matter on which such attorney is to be employed. **(f)** The trustee may not employ a person that has served as an examiner in the case.

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Source location: Title 11, Chapter 3, § 327; chapter-003-case-administration.md

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Federal law — U.S. Code and appendices · legal_authorities

28 U.S.C. § 581 — United States trustees

**(a)** The Attorney General shall appoint one United States trustee for each of the following regions composed of Federal judicial districts (without regard to section 451): (1) The judicial districts established for the States of Maine, Massachusetts, New Hampshire, and Rhode Island. (2) The judicial districts established for the States of Connecticut, New York, and Vermont. (3) The judicial districts established for the States of Delaware, New Jersey, and Pennsylvania. (4) The judicial districts established for the States of Maryland, North Carolina, South Carolina, Virginia, and West Virginia and for the District of Columbia. (5) The judicial districts established for the States of Louisiana and Mississippi. (6) The Northern District of Texas and the Eastern District of Texas. (7) The Southern District of Texas and the Western District of Texas. (8) The judicial districts established for the States of Kentucky and Tennessee. (9) The judicial districts established for the States of Michigan and Ohio. (10) The Central District of Illinois and the Southern District of Illinois; and the judicial districts established for the State of Indiana. (11) The Northern District of Illinois; and the judicial districts established for the State of Wisconsin. (12) The judicial districts established for the States of Minnesota, Iowa, North Dakota, and South Dakota. (13) The judicial districts established for the States of Arkansas, Nebraska, and Missouri. (14) The District of Arizona. (15) The Southern District of California; and the judicial districts established for the State of Hawaii, and for Guam and the Commonwealth of the Northern Mariana Islands. (16) The Central District of California. (17) The Eastern District of California and the Northern District of Cal

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Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 101 — Definitions

In this title the following definitions shall apply: (1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized. (2) The term “affiliate” means— (A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities— (i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or (ii) solely to secure a debt, if such entity has not in fact exercised such power to vote; (B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities— (i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or (ii) solely to secure a debt, if such entity has not in fact exercised such power to vote; (C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or (D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement. (3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not

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Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 1107 — Rights, powers, and duties of debtor in possession

**(a)** Subject to any limitations on a trustee serving in a case under this chapter, and to such limitations or conditions as the court prescribes, a debtor in possession shall have all the rights, other than the right to compensation under [section 330 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section330&num=0&edition=prelim), and powers, and shall perform all the functions and duties, except the duties specified in sections 1106(a)(2), (3), and (4) of this title, of a trustee serving in a case under this chapter. **(b)** Notwithstanding [section 327(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327/a&num=0&edition=prelim), a person is not disqualified for employment under [section 327 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327&num=0&edition=prelim) by a debtor in possession solely because of such person’s employment by or representation of the debtor before the commencement of the case.

Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1107

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Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 1195 — Transactions with professionals

Notwithstanding [section 327(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327/a&num=0&edition=prelim), a person is not disqualified for employment under [section 327 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327&num=0&edition=prelim), by a debtor solely because that person holds a claim of less than $10,000 that arose prior to commencement of the case.

Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1195

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Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 326 — Limitation on compensation of trustee

**(a)** In a case under chapter 7 or 11, other than a case under subchapter V of chapter 11, the court may allow reasonable compensation under [section 330 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section330&num=0&edition=prelim) of the trustee for the trustee’s services, payable after the trustee renders such services, not to exceed 25 percent on the first $5,000 or less, 10 percent on any amount in excess of $5,000 but not in excess of $50,000, 5 percent on any amount in excess of $50,000 but not in excess of $1,000,000, and reasonable compensation not to exceed 3 percent of such moneys in excess of $1,000,000, upon all moneys disbursed or turned over in the case by the trustee to parties in interest, excluding the debtor, but including holders of secured claims. **(b)** In a case under subchapter V of chapter 11 or chapter 12 or 13 of this title, the court may not allow compensation for services or reimbursement of expenses of the United States trustee or of a standing trustee appointed under [section 586(b) of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section586/b&num=0&edition=prelim), but may allow reasonable compensation under [section 330 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section330&num=0&edition=prelim) of a trustee appointed under section 1202(a) or 1302(a) of this title for the trustee’s services, payable after the trustee renders such services, not to exceed five percent upon all payments under the plan. **(c)** If more than one person serves as trustee in the case, the aggregate compensation of such persons for such service may not exceed the maximum compensation prescribed for a single trustee by subsection (a) or (b) of this

Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 326

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Federal law — U.S. Code and appendices · legal_authorities

28 U.S.C. § 1334 — Bankruptcy cases and proceedings

**(a)** Except as provided in subsection (b) of this section, the district courts shall have original and exclusive jurisdiction of all cases under title 11. **(b)** Except as provided in subsection (e)(2), and notwithstanding any Act of Congress that confers exclusive jurisdiction on a court or courts other than the district courts, the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11. **(c)** (1) Except with respect to a case under chapter 15 of title 11, nothing in this section prevents a district court in the interest of justice, or in the interest of comity with State courts or respect for State law, from abstaining from hearing a particular proceeding arising under title 11 or arising in or related to a case under title 11. (2) Upon timely motion of a party in a proceeding based upon a State law claim or State law cause of action, related to a case under title 11 but not arising under title 11 or arising in a case under title 11, with respect to which an action could not have been commenced in a court of the United States absent jurisdiction under this section, the district court shall abstain from hearing such proceeding if an action is commenced, and can be timely adjudicated, in a State forum of appropriate jurisdiction. **(d)** Any decision to abstain or not to abstain made under subsection (c) (other than a decision not to abstain in a proceeding described in subsection (c)(2)) is not reviewable by appeal or otherwise by the court of appeals under section 158(d), 1291, or 1292 of this title or by the Supreme Court of the United States under [section 1254 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-sec

Source: Supplied U.S. Code snapshot — release unconfirmed · 28 U.S.C. § 1334

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Federal law — U.S. Code and appendices · legal_authorities

28 U.S.C. § 586 — Duties; supervision by Attorney General

**(a)** Each United States trustee, within the region for which such United States trustee is appointed, shall— (1) establish, maintain, and supervise a panel of private trustees that are eligible and available to serve as trustees in cases under chapter 7 of title 11; (2) serve as and perform the duties of a trustee in a case under title 11 when required under title 11 to serve as trustee in such a case; (3) supervise the administration of cases and trustees in cases under chapter 7, 11 (including subchapter V of chapter 11), 12, 13, or 15 of title 11 by, whenever the United States trustee considers it to be appropriate— (A) (i) reviewing, in accordance with procedural guidelines adopted by the Executive Office of the United States Trustee (which guidelines shall be applied uniformly by the United States trustee except when circumstances warrant different treatment), applications filed for compensation and reimbursement under [section 330 of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section330&num=0&edition=prelim); and (ii) filing with the court comments with respect to such application and, if the United States Trustee considers it to be appropriate, objections to such application; (B) monitoring plans and disclosure statements filed in cases under chapter 11 of title 11 and filing with the court, in connection with hearings under sections 1125 and 1128 of such title, comments with respect to such plans and disclosure statements; (C) monitoring plans filed under chapters 12 and 13 of title 11 and filing with the court, in connection with hearings under sections 1224, 1229, 1324, and 1329 of such title, comments with respect to such plans; (D) taking such action as the United States trustee deems to be appr

Source: Supplied U.S. Code snapshot — release unconfirmed · 28 U.S.C. § 586

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Federal law — U.S. Code and appendices · legal_authorities

11 U.S.C. § 327 — Employment of professional persons

Page 55 TITLE 11—BANKRUPTCY § 327 him, the combined total of the fees payable to the in- terim trustee and the permanent trustee may not ex- ceed the amount specified in this section. Under cur- rent law, very often a receiver receives a full fee and a subsequent trustee also receives a full fee. The result- ant ‘‘double-dipping’’, especially in cases in which the receiver and the trustee are the same individual, is det- rimental to the interests of creditors, by needlessly in- creasing the cost of administering bankruptcy estates. Subsection (e) [enacted as (d)] permits the court to deny compensation to a trustee if the trustee has been derelict in his duty by employing counsel, who is not disinterested. Editorial Notes AMENDMENTS 2019—Subsec. (a). Pub. L. 116–54, § 4(a)(4)(A), inserted ‘‘, other than a case under subchapter V of chapter 11’’ after ‘‘7 or 11’’. Subsec. (b). Pub. L. 116–54, § 4(a)(4)(B), inserted ‘‘sub- chapter V of chapter 11 or’’ after ‘‘In a case under’’. 1994—Subsec. (a). Pub. L. 103–394 substituted ‘‘25 per- cent on the first $5,000 or less, 10 percent on any amount in excess of $5,000 but not in excess of $50,000, 5 percent on any amount in excess of $50,000 but not in excess of $1,000,000, and reasonable compensation not to exceed 3 percent of such moneys in excess of $1,000,000’’ for ‘‘fifteen percent on the first $1,000 or less, six per- cent on any amount in excess of $1,000 but not in excess of $3,000, and three percent on any amount in excess of $3,000’’. 1986—Subsec. (b). Pub. L. 99–554 amended subsec. (b) generally, substituting ‘‘under chapter 12 or 13 of this title’’ for ‘‘under chapter 13 of this title’’, ‘‘expenses of the United States trustee or of a standing trustee ap- pointed under section 586(b) of title 28’

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