Jump to ContentJump to Main Navigation
Professional Fees in Corporate BankruptciesData, Analysis, and Evaluation$
Users without a subscription are not able to see the full content.

Lynn M. LoPucki and Joseph W. Doherty

Print publication date: 2011

Print ISBN-13: 9780195337723

Published to Oxford Scholarship Online: May 2011

DOI: 10.1093/acprof:oso/9780195337723.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 08 April 2020

11. Cost Control Failure

11. Cost Control Failure

Chapter:
(p.215) 11. Cost Control Failure
Source:
Professional Fees in Corporate Bankruptcies
Author(s):

Lynn M. Lopucki

Joseph W. Doherty (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195337723.003.0011

Previous chapters described competition among some bankruptcy courts for the cases of the largest public companies. To succeed in that competition, the bankruptcy courts must abandon the effort to control fees. Bankruptcy professionals will not steer their clients to courts that will control the professionals' fees. That puts the competing courts in a bind. The Bankruptcy Code and Rules require that the courts control professional fees, specify the precise methods by which they are to do it, and bar the courts from relaxing the requirements. The competing bankruptcy courts have responded to this dilemma by going rogue, routinely authorizing and tolerating professional fee practices that violate the Bankruptcy Code and Rules. Because most bankruptcy judges are unwilling to adopt illegal practices, most bankruptcy courts have dropped out of the competition. The effect has been to clear a path to victory for judges willing to adopt illegal practices. This chapter documents three such practices empirically: the Ordinary-Course-Professionals Practice, the Prior-Payment-Disclosure Practice, and Disburse-First-and-Decide-Later Practice.

Keywords:   bankruptcy courts, bankruptcy fees, professional fees, illegal practices, Bankruptcy Code and Rules

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .