Notice Regarding Compliance with Bankruptcy Rule 2016(B)

Release Date: 
Thursday, June 17, 2004

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NOTICE REGARDING COMPLIANCE WITH BANKRUPTCY RULE 2016(B)

Counsel for debtors are reminded that Bankruptcy Rule 2016(b) requires the filing of a supplemental disclosure of compensation paid or agreed to be paid, and the source of such
compensation, if not previously disclosed. This disclosure must be filed and served on the United
States Trustee within 15 days after any such payment or agreement

Specifically, this requirement applies to attorney fees for services provided by the debtor’s
attorney in connection with a redemption agreement if not previously disclosed. Moreover, if the
debtor incurs a debt to finance the payment of such compensation, whether to the entity financing
the redemption or otherwise, the details of that financing must also be disclosed.

Finally, counsel are reminded that under 11 U.S.C. §329(b), the Court retains the authority
to review the reasonableness of any compensation for services provided in connection with a
redemption agreement.