Applications for Employment of Professionals.

P a g e | 14 parties in interest to determine whether a conflict of interest exists, including whether the professional represented the debtor prepetition; The professional’s retainer or other fees have been, or will be, paid by a third-party payor. In such cases, the application must include a verified statement of the debtor disclosing all transfers by the debtor to the entity providing the retainer and any other circumstances that may create a conflict of interest between the debtor and the payor. The payor must retain independent counsel or provide a written acknowledgement that the debtor’s attorney’s duty of loyalty is owed solely to the debtor, and not to the payor; The professional represents multiple debtors in related or jointly administered cases; A trustee seeks to employ his or her own firm. In such cases, the application must explain why such employment is in the best interests of the estate.

The professional proposes to be paid under non-traditional compensation arrangements. Traditional compensation arrangements would include, for example, a flat fee agreement or contingency fee agreement or hourly fee agreement; The professional asserts a lien on the debtor’s property; The debtor owes the professional payment for services rendered prepetition, in which case the notice must state the amount of fees owed and whether the professional has received any preferential payments under 11 U.S.C. § 547(b); or (2) (3) (4) (5) (6) (7) (8) The Court orders notice for any other reason. (f) Applications that will be Routinely Granted or Denied, with the Right to Request a Hearing. If notice of an application to employ a professional person is not required by subsection (e), and subject to subsection (g), the Court may enter an order approving the employment on an ex parte basis.

Any party in interest may object to entry of the order, request a hearing, and schedule a hearing to reconsider the issuance of any such order within fourteen days of the order’s date. (g) Immediate and Irreparable Harm Under Fed. R. Bankr. P. 6003(a). Nothing in this Local Rule modifies the Fed. R. Bankr. P. 6003(a) prohibition on the issuance of an order granting an employment application during the time specified in Rule 6003(a) absent a determination that relief is necessary to avoid immediate and irreparable harm. If a professional requests entry of an order approving an application prior to the time specified in Fed. R. Bankr. P. 6003(a), the application must set forth a sufficient factual basis to establish immediate and irreparable harm will occur if not granted earlier approval.

Related Authority: 11 U.S.C. §§ 326, 327, 329, 330, and 504 Mont. LBR December 1, 2025