Alhambra Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 504

TITLE 11 - BANKRUPTCY
CHAPTER 5 - CREDITORS, THE DEBTOR, AND THE ESTATE
    SUBCHAPTER I - CREDITORS AND CLAIMS

-HEAD-
    Sec. 504. Sharing of compensation

-STATUTE-
      (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.

      (b)(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.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2582; Pub. L. 109-8, title
    III, Sec. 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.

                                AMENDMENTS                            
      2005 - Subsec. (c). Pub. L. 109-8 added subsec. (c).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      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.

-End-
Professional Membership
