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11 U.S.C. § 1195 — Transactions with professionals
Federal law — U.S. Code and appendices · legal_authorities
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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Source file: Laws/federal/codes/united-states-code/title-11/section-1195-transactions-with-professionals--d995e77b67.md
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Source location: Title 11, Chapter 11, § 1195; chapter-011-reorganization.md
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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.
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Federal law — U.S. Code and appendices · legal_authorities
**(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.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 327
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Federal law — U.S. Code and appendices · legal_authorities
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
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 101
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Federal law — U.S. Code and appendices · legal_authorities
Page 293
TITLE 11—BANKRUPTCY
§ 1201
shall be retained by the trustee until confirma-
tion or denial of confirmation of a plan. If a plan
is confirmed, the trustee shall distribute any
such payment in accordance with the plan. If a
plan is not confirmed, the trustee shall return
any such payments to the debtor after deduct-
ing—
(1) any unpaid claim allowed under section
503(b) of this title;
(2) any payment made for the purpose of pro-
viding adequate protection of an interest in
property due to the holder of a secured claim;
and
(3) any fee owing to the trustee.
(b) OTHER PLANS.—If a plan is confirmed under
section 1191(b) of this title, except as otherwise
provided in the plan or in the order confirming
the plan, the trustee shall make payments to
creditors under the plan.
(c) PAYMENTS PRIOR TO CONFIRMATION.—Prior
to confirmation of a plan, the court, after notice
and a hearing, may authorize the trustee to
make payments to the holder of a secured claim
for the purpose of providing adequate protection
of an interest in property.
(Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133
Stat. 1084.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 180 days after Aug. 23, 2019, see sec-
tion 5 of Pub. L. 116–54, set out as an Effective Date of
2019 Amendment note under section 101 of this title.
§ 1195. Transactions with professionals
Notwithstanding section 327(a) of this title, a
person is not disqualified for employment under
section 327 of this title, by a debtor solely be-
cause that person holds a claim of less than
$10,000 that arose prior to commencement of the
case.
(Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133
Stat. 1084.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 180 days a
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 1195
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