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Code · U.S. Code · Title 11 - BANKRUPTCY · CHAPTER 5— CREDITORS, THE DEBTOR, AND THE ESTATE · SUBCHAPTER I— CREDITORS AND CLAIMS · § 504

§ 504. Sharing of compensation

366 words·~2 min read·/usc/title-11/section-504

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)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—
(1)any such compensation or reimbursement with another person; or
(2)any compensation or reimbursement received by another person under such sections.
(1)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.
(2)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.
(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.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2582; Pub. L. 109–8, title III, § 326, Apr. 20, 2005, 119 Stat. 99.)
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.
Connections3 cite this · traces to 3
6 references not yet in our index
  • Pub. L. 95–598
  • 92 Stat. 2582
  • Pub. L. 109–8, title III, § 326
  • 119 Stat. 99
  • Pub. L. 109–8
  • section 1501 of Pub. L. 109–8
Citation graph
cites case law
§ 504
Sharing of compensation
U.S.C.×2
Stat.×1
U.S.C.§ 303
U.S.C.§ 503
U.S.C.§ 101
Pub. L.Pub. L. 95–598
Stat.92 Stat. 2582
Pub. L.Pub. L. 109–8, title III, § 326
Stat.119 Stat. 99
Pub. L.Pub. L. 109–8
Cites 9 · showing 8Cited by 3 across 2 sources
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