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.

13 minute read November 01, 2015 at 11:32 AM
By
Alex M. Sher And 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 of their clients under section 330 of the Bankruptcy Code.

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