Compensation for Services Rendered & Reimbursement of Expenses.

U.S. Bankruptcy Court for the District of Oregon

Rule Set: Local Bankruptcy Rules of the U.S. Bankruptcy Court for the District of Oregon

Rule: 2016-1

Jurisdiction: DORB

Bluebook Citation: Bankr. D. Or. L.Adm.R. R. 2016-1

All Rules: Bankr. D. Or. L.Adm.R. Local Bankruptcy Rules, complete index


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-26- (D) Holdback for Expenses If Order Not Entered, but Sale Can Close. If the court has not entered an order regarding an expense claim when the collateral sale closes, the trustee must, until the court enters an order regarding the expense claim, retain in trust for the secured creditor 150% of the amount the creditor sought for expenses, which amount will be impressed with the creditor’s security interest or lien. (2) Chapter 12 or 13. (A) Inclusion of Expenses in Proof of Claim.

A secured creditor who requests payment of expenses by the trustee must also: (i) General. Include representations that: (I) the expenses were actually charged to the claimant, (II) none of the parties for whom expenses are claimed has shared or agreed to share any compensation received or to be received for services rendered in connection with this case, except with a regular member, partner, or associate of the claimant’s firm, and (III) claimant has no ownership interest in any of the entities providing services for which reimbursement is sought. (ii) Prepetition Expenses. Include and identify the expenses.

(iii) Postpetition and Preconfirmation. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), either: (I) include postpetition, but preconfirmation, expenses in an initial or amended proof of claim, or (II) no later than 30 days after entry of the confirmation order, file an initial or amended proof of claim. The part of the claim attributable to postpetition and preconfirmation expenses must be clearly identified. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1.

(iv) Postconfirmation. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), no later than the 90th day before the debtor is scheduled to make the final plan payment, file an initial or amended proof of claim that clearly identifies the requested expenses incurred after plan confirmation. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1. (B) Disclosure of Preservation of Expense Claim After Discharge.

Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), a creditor that asserts a right to expenses as part of its secured claim, but does not request payment of those expenses by the trustee, must disclose its claimed entitlement to payment of the expenses either by filing and serving on the debtor a notice of the expense claim, or by including the expense claim in the creditor’s proof of claim. A secured creditor may elect to include some expenses in its proof of claim, and other expenses in a notice. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1. (i) Information Required in a Notice.

A notice provided pursuant to (B) must: (I) state that the creditor asserts the right to expenses as part of its secured claim and does not request payment by the trustee, and (II) set forth the amount of the claim for expenses to the extent known at the time the notice is filed and any interest rate charged on accrued expenses. 12/1/2025

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