Public Law 119-73 (01/23/2026)

11 U.S.C. § 504

Sharing of compensation

(a)
Except as provided in subsection (b) of this section, a person receiving compensation or reimbursement under section 503(b)(2) or 503(b)(4) of this title may not share or agree to share—
(1)
any such compensation or reimbursement with another person; or
(2)
any compensation or reimbursement received by another person under such sections.
(b)
(1)
A member, partner, or regular associate in a professional association, corporation, or partnership may share compensation or reimbursement received under section 503(b)(2) or 503(b)(4) of this title with another member, partner, or regular associate in such association, corporation, or partnership, and may share in any compensation or reimbursement received under such sections by another member, partner, or regular associate in such association, corporation, or partnership.
(2)
section 303 of this titlesection 503(b)(4) of this title An attorney for a creditor that files a petition under may share compensation and reimbursement received under with any other attorney contributing to the services rendered or expenses incurred by such creditor’s attorney.
(c)
This section shall not apply with respect to sharing, or agreeing to share, compensation with a bona fide public service attorney referral program that operates in accordance with non-Federal law regulating attorney referral services and with rules of professional responsibility applicable to attorney acceptance of referrals.

Pub. L. 95–59892 Stat. 2582Pub. L. 109–8, title III, § 326119 Stat. 99(, , ; , , .)

Historical and Revision Notes

senate report no. 95–989

Section 504 prohibits the sharing of compensation, or fee splitting, among attorneys, other professionals, or trustees. The section provides only two exceptions: partners or associates in the same professional association, partnership, or corporation may share compensation inter se; and attorneys for petitioning creditors that join in a petition commencing an involuntary case may share compensation.

Editorial Notes

Amendments

Pub. L. 109–82005—Subsec. (c). added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Pub. L. 109–8section 1501 of Pub. L. 109–8section 101 of this titleAmendment by effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see , set out as a note under .