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

48 U.S.C. § 2176

Compensation of professionals

(a)

Compensation for services rendered and reimbursement for expenses

section 1103 of title 11section 926 of title 11After notice to the parties in interest and the United States Trustee and a hearing, the court may award to a professional person employed by the debtor (in the debtor’s sole discretion), the Oversight Board (in the Oversight Board’s sole discretion), a committee under , or a trustee appointed by the court under —
(1)
reasonable compensation for actual, necessary services rendered by the professional person, or attorney and by any paraprofessional person employed by any such person; and
(2)
reimbursement for actual, necessary expenses.
(b)

Award of compensation less than amount requested

The court may, on its own motion or on the motion of the United States Trustee or any other party in interest, award compensation that is less than the amount of compensation that is requested.

(c)

Factors considered

In determining the amount of reasonable compensation to be awarded to a professional person, the court shall consider the nature, the extent, and the value of such services, taking into account all relevant factors, including—
(1)
the time spent on such services;
(2)
the rates charged for such services;
(3)
1
1 See References in Text note below.
whether the services were necessary to the administration of, or beneficial at the time at which the service was rendered toward the completion of, a case under this chapter; 
(4)
whether the services were performed within a reasonable amount of time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed;
(5)
with respect to a professional person, whether the person is board certified or otherwise has demonstrated skill and experience in the restructuring field; and
(6)
whether the compensation is reasonable based on the customary compensation charged by comparably skilled practitioners in cases other than cases under this subchapter or title 11.
(d)

Services ineligible for compensation

The court shall not allow compensation for—
(1)
unnecessary duplication of services; or
(2)
services that were not—
(A)
reasonably likely to benefit the debtor; or
(B)
necessary to the administration of the case.
(e)

section 2177 of this title Offset for interim compensation under

section 2177 of this titleThe court shall reduce the amount of compensation awarded under this section by the amount of any interim compensation awarded under , and, if the amount of such interim compensation exceeds the amount of compensation awarded under this section, may order the return of the excess to the debtor.

(f)

Compensation for preparation of fee application

Any compensation awarded for the preparation of a fee application shall be based on the level and skill reasonably required to prepare the application.

Pub. L. 114–187, title III, § 316130 Stat. 584(, , .)

Editorial Notes

References in Text

Pub. L. 114–187130 Stat. 577Pub. L. 114–187This chapter, referred to in subsec. (c)(3), was so in the original, but probably should have been a reference to “this title”, meaning title III of , , , which is classified generally to this subchapter. does not contain chapters.