11 U.S.C. § 327 — Employment of professional persons
submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 292 words · no verdicts yet
A bankruptcy trustee can hire lawyers, accountants, and other professionals to help run the case, with court approval. These professionals can't have any interest against the estate and must be disinterested. Special exceptions let the trustee keep the debtor's own professionals or use one for a limited purpose.
(a) Except as this section otherwise allows, the trustee — with the court's approval — can hire one or more attorneys, accountants, appraisers, auctioneers, or other professionals to help carry out the trustee's duties. These professionals can't hold or represent an interest against the estate, and must be "disinterested persons."
(b) If the trustee is allowed to run the debtor's business (under section 721, 1202, or 1108), and the debtor* already had salaried attorneys, accountants, or other professionals working for it, the trustee can keep or replace those professionals if the business needs it.
(c) In a chapter 7, 12, or 11 case, a person isn't disqualified from being hired just because they've worked for or represented a creditor* — unless another creditor or the U.S. trustee objects. If someone objects, the court must reject the hire if there's an actual conflict of interest.
(d) The court can let the trustee act as the estate's own attorney* or accountant*, if that's in the estate's best interest.
(e) The trustee, with court approval, can hire — for one specific, limited purpose other than running the case — an attorney who has represented the debtor, as long as it's in the estate's best interest and that attorney doesn't have any interest against the debtor or estate on that particular matter.
(f) The trustee can't hire anyone who served as an examiner in the case.
Except as otherwise provided in this section, the trustee, with the court’s approval, may employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate, and that are disinterested persons, to represent or assist the trustee in carrying out the trustee’s duties under this title.
If the trustee is authorized to operate the business of the debtor* under section 721, 1202, or 1108 of this title, and if the debtor has regularly employed attorneys, accountants, or other professional persons on salary, the trustee may retain or replace such professional persons if necessary in the operation of such business.
In a case under chapter 7, 12, or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor*, unless there is objection by another creditor or the United States trustee, in which case the court shall disapprove such employment if there is an actual conflict of interest.
The court may authorize the trustee to act as attorney* or accountant* for the estate if such authorization is in the best interest of the estate.
The trustee, with the court’s approval, may employ, for a specified special purpose, other than to represent the trustee in conducting the case, an attorney that has represented the debtor, if in the best interest of the estate, and if such attorney does not represent or hold any interest adverse to the debtor or to the estate with respect to the matter on which such attorney is to be employed.
The trustee may not employ a person that has served as an examiner in the case.
Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2563; Pub. L. 98–353, title III, § 430(c), July 10, 1984, 98 Stat. 370; Pub. L. 99–554, title II, §§ 210, 257(e), Oct. 27, 1986, 100 Stat. 3099, 3114.)
- 1978Enacted · Pub. L. 95-598 · 92 Stat. 2563
- 1984Amended · Pub. L. 98-353 · 98 Stat. 370
- 1986Amended · Pub. L. 99-554 · 100 Stat. 3099, 3114
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-598 on 1978-11-06.
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