Fifth Circuit Jettisons <i>Pro-Snax</i> 'Material Benefit' Standard for Bankruptcy Professional Compensation

The Fifth Circuit recently issued a ruling that changes compensation for professional services in bankruptcy: In <I>Pro-Snax</I>, the court had ruled that, to be compensable under section 330, services must result in "an identifiable, tangible, and material benefit to the bankruptcy estate." Now that has changes.

30 minute readNovember 02, 2015 at 12:00 AM
By
Alex M. Sher
Mark G. Douglas
Fifth Circuit Jettisons <i>Pro-Snax</i> 'Material Benefit' Standard for Bankruptcy Professional Compensation

Professionals retained in a bankruptcy case by a trustee, a Chapter 11 debtor-in-possession (DIP) or an official committee may be awarded “reasonable compensation” for “actual, necessary services” performed on behalf

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