Title 11 — Bankruptcy
Chapter 5 — Creditors, the Debtor, and the Estate
§ 504. Sharing of compensation
Statutory text
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—
any such compensation or reimbursement with another person; or
any compensation or reimbursement received by another person under such sections.
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.
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 creditor’s attorney.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 504
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2582
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2582Pub. L. 109–8 title III § 326 · 119 Stat. 23
Added · 11 U.S.C. § 504(c)
Pub. L. 109–8 added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 109–8 added subsec. (c).Enacted provision · exact public law section
SEC. 326. SHARING OF COMPENSATION. Section 504 of title 11, United States Code, is amended by adding at the end the following: “(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.” .Effective date note
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.
1 of 2 references resolved to an enrolled provision · 1 partial
Notes
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.
Editorial Notes
Amendments
2005—Subsec. (c). Pub. L. 109–8 added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , 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.
Credits
1978–2005 · 2 acts
Show as published
(Pub. L. 95–598, , 92 Stat. 2582; Pub. L. 109–8, title III, § 326, , 119 Stat. 99.)