Charles Riecke Published in ABI Journal

Charles' article, "Board Certification and BAPCPA: The Bottom Line," in the February 2007 issue of the ABI Journal addresses the new criterion for determining reasonable compensation under §330 of the Bankruptcy Code. "With the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), a little-known provision went into effect that could conceivably affect the pocketbook of every bankruptcy practitioner in the country who seeks court approval of his or her compensation under the Bankruptcy code. The provision is new §330(a)(3)(E), one of the now six enumerated factors that bankruptcy courts 'shall consider' in 'determining the amount of reasonable compensation to be awarded to an examiner, trustee under chapter 11, or professional person..." With the enactment of this subprovision, board certification has moved beyond simply a marketing tool to become one of the criteria established to determine compensation awards. If nothing else, this new section, should, as an objective criterion, remove or diminish at least some small part of the subjectivity in fee awards. In this respect, it may tip the scales either way, and may provide a greater foothold from which to argue an appeal.