DOJ Comes Out Swinging In New Bankruptcy Fee Guidelines
By Lance Duroni
Law360, Chicago (June 11, 2013, 1:41 PM EDT) -- The U.S. Department of Justice’s bankruptcy watchdog arm on Tuesday released its long-awaited new framework for scrutinizing attorneys’ fees in large Chapter 11 cases, but its efforts to boost transparency and keep bankruptcy lawyers from charging above-market rates may be overshadowed by a number of provisions sure to spark controversy.
The new guidelines — scheduled to go into effect Nov. 1 — apply to cases involving $50 million or more in both assets and liabilities, excluding single asset real estate cases. They explain how U.S. trustees...