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Bankruptcy Professional Fees: Guidelines for Reviewing Fee Applications

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Report Type Reports and Testimonies
Report Date March 6, 1995
Report No. GGD-95-36FS
Subject
Summary:

This fact sheet provides information on the guidelines used by Assistant U.S. Trustees within the Justice Department to assess the reasonableness of fee requests from attorneys and other professionals involved in bankruptcy cases. GAO surveyed Assistant U.S. Attorneys on (1) the guidelines they used to review professionals' fee requests overall and in chapter 11 cases specifically, (2) the reasons the local Office of U.S. Trustees or other parties in bankruptcy cases have objected to chapter 11 fee applications, and (3) the adequacy of compensation for private trustees in chapter 7 cases. GAO also examines differences in the offices with and without guidelines in U.S. Trustee activities, such as the time spent reviewing professional fee applications, the frequency and the types of objectives made to those applications, and the frequency of informal consultation on fee applications.

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