11-U.S.C.-504
§504 – Sharing of Compensation
Pathway
Title 11 > Chapter 5 > Subchapter I > Section 504
Details
- Reference: Section 504
- Legend: §504 – Sharing of Compensation
- USCode Year: 2013
Provision Content
(a) Except as provided in subsection (b) of this section, a person receiving compensation or reimbursement under section 503(b)(2) or 503(b)(4) of this title may not share or agree to share—
(1) any such compensation or reimbursement with another person; or
(2) any compensation or reimbursement received by another person under such sections.
(b)(1) A member, partner, or regular associate in a professional association, corporation, or partnership may share compensation or reimbursement received under section 503(b)(2) or 503(b)(4) of this title with another member, partner, or regular associate in such association, corporation, or partnership, and may share in any compensation or reimbursement received under such sections by another member, partner, or regular associate in such association, corporation, or partnership.
(2) An attorney for a creditor that files a petition under section 303 of this title may share compensation and reimbursement received under section 503(b)(4) of this title with any other attorney contributing to the services rendered or expenses incurred by such creditors attorney.
(c) This section shall not apply with respect to sharing, or agreeing to share, compensation with a bona fide public service attorney referral program that operates in accordance with non-Federal law regulating attorney referral services and with rules of professional responsibility applicable to attorney acceptance of referrals.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2582; Pub. L. 109–8, title III, §326, Apr. 20, 2005, 119 Stat. 99.)
Historical and Revision Notes
senate report no. 95–989
Section 504 prohibits the sharing of compensation, or fee splitting, among attorneys, other professionals, or trustees. The section provides only two exceptions: partners or associates in the same professional association, partnership, or corporation may share compensation inter se; and attorneys for petitioning creditors that join in a petition commencing an involuntary case may share compensation.
Amendments
2005—Subsec. (c). Pub. L. 109–8 added subsec. (c).
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
U.S. Encyclopedia of Law Coverage
11-U.S.C.-345 in the Legal Encyclopedia: Bankruptcy
In this entry about 11-U.S.C.-345, find legal reference material, bibliographies and premiere content related to bankruptcy in the American Encyclopedia of Law, presenting a comprehensive view of the United States bankruptcy-specific issues, written by authorities in the field.
11-U.S.C.-1512 in the Legal Encyclopedia: Creditors
In this entry about 11-U.S.C.-1512, find legal reference material, bibliographies and premiere content related to creditors in the American Encyclopedia of Law, presenting a comprehensive view of the United States creditors-specific issues, written by authorities in the field.
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