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11 U.S.C. § 328 — Limitation on compensation of professional persons
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The trustee, or a committee appointed under [section 1102 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1102&num=0&edition=prelim), with the court’s approval, may employ or authorize the employment of a professional person under section 327 or 1103 of this title, as the case may be, on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee basis. Notwithstanding such terms and conditions, the court may allow compensation different from the compensation provided under such terms and conditions after the conclusion of such employment, if such terms and conditions prove to have been improvident in light of developments not capable of being anticipated at the time of the fixing of such terms and conditions.
**(b)** If the court has authorized a trustee to serve as an attorney or accountant for the estate under [section 327(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327/d&num=0&edition=prelim), the court may allow compensation for the trustee’s services as such attorney or accountant only to the extent that the trustee performed services as attorney or accountant for the estate and not for performance of any of the trustee’s duties that are generally performed by a trustee without the assistance of an attorney or accountant for the estate.
**(c)** Except as provided in section 327(c), 327(e), or 1107(b) of this title, the court may deny allowance of compensation for services and reimbursement of expenses of a professional person employed under section 327 or 1103 of this title if, at any time during such professional person’s employment under section 327 or 1103 of this ti
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Source file: Laws/federal/codes/united-states-code/title-11/section-328-limitation-on-compensation-of-professional-persons--6383f9afa0.md
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Source location: Title 11, Chapter 3, § 328; chapter-003-case-administration.md
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**(a)** The trustee, or a committee appointed under [section 1102 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1102&num=0&edition=prelim), with the court’s approval, may employ or authorize the employment of a professional person under section 327 or 1103 of this title, as the case may be, on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee basis. Notwithstanding such terms and conditions, the court may allow compensation different from the compensation provided under such terms and conditions after the conclusion of such employment, if such terms and conditions prove to have been improvident in light of developments not capable of being anticipated at the time of the fixing of such terms and conditions.
**(b)** If the court has authorized a trustee to serve as an attorney or accountant for the estate under [section 327(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section327/d&num=0&edition=prelim), the court may allow compensation for the trustee’s services as such attorney or accountant only to the extent that the trustee performed services as attorney or accountant for the estate and not for performance of any of the trustee’s duties that are generally performed by a trustee without the assistance of an attorney or accountant for the estate.
**(c)** Except as provided in section 327(c), 327(e), or 1107(b) of this title, the court may deny allowance of compensation for services and reimbursement of expenses of a professional person employed under section 327 or 1103 of this title if, at any time during such professional person’s employment under section 327 or 1103 of this title, such professional person is not a disinterested person, or represents or holds an interest adverse to the interest of the estate with respect to the matter on which such professional person is employed.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) Except as provided in paragraph (3), as soon as practicable after the order for relief under chapter 11 of this title, the United States trustee shall appoint a committee of creditors holding unsecured claims and may appoint additional committees of creditors or of equity security holders as the United States trustee deems appropriate.
(2) On request of a party in interest, the court may order the appointment of additional committees of creditors or of equity security holders if necessary to assure adequate representation of creditors or of equity security holders. The United States trustee shall appoint any such committee.
(3) Unless the court for cause orders otherwise, a committee of creditors may not be appointed in a small business case or a case under subchapter V of this chapter.
(4) On request of a party in interest and after notice and a hearing, the court may order the United States trustee to change the membership of a committee appointed under this subsection, if the court determines that the change is necessary to ensure adequate representation of creditors or equity security holders. The court may order the United States trustee to increase the number of members of a committee to include a creditor that is a small business concern (as described in section 3(a)(1) of the Small Business Act), if the court determines that the creditor holds claims (of the kind represented by the committee) the aggregate amount of which, in comparison to the annual gross revenue of that creditor, is disproportionately large.
**(b)**
(1) A committee of creditors appointed under subsection (a) of this section shall ordinarily consist of the persons, willing to serve, that hold the seven largest claims against the debtor of the kinds represented on such committe
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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
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Federal law — U.S. Code and appendices · legal_authorities
Page 56
TITLE 11—BANKRUPTCY
§ 328
Section 327(c) represents a compromise between H.R.
8200 as passed by the House and the Senate amendment.
The provision states that former representation of a
creditor, whether secured or unsecured, will not auto-
matically disqualify a person from being employed by
a trustee, but if such person is employed by the trustee,
the person may no longer represent the creditor in con-
nection with the case.
Section 327(f) prevents an examiner from being em-
ployed by the trustee.
SENATE REPORT NO. 95–989
This section authorizes the trustee, subject to the
court’s approval, to employ professional persons, such
as attorneys, accountants, appraisers, and auctioneers,
to represent or perform services for the estate. The
trustee may employ only disinterested persons that do
not hold or represent an interest adverse to the estate.
Subsection (b) is an exception, and authorizes the
trustee to retain or replace professional persons that
the debtor has employed if necessary in the operation
of the debtor’s business.
Subsection (c) provides a professional person is not
disqualified for employment solely because of the per-
son’s prior employment by or representation of a se-
cured or unsecured creditor.
Subsection (d) permits the court to authorize the
trustee, if qualified to act as his own counsel or ac-
countant.
Subsection (e) permits the trustee, subject to the
court’s approval, to employ for a specified special pur-
pose an attorney that has represented the debtor, if
such employment is in the best interest of the estate
and if the attorney does not hold or represent an inter-
est adverse to the debtor of the estate with respect to
the matter on which he is to be employed. This sub-
section does not authorize the employmen
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