WSJ: Bankruptcy Watchdogs to Increase Legal Fee Scrutiny
The Wall Street Journal reported that starting November 1, attorneys who represent large corporate debtors under Chapter 11 protection will be subject to more disclosures and rules. The Journal noted that this push by the Department of Justice is part of a crackdown on the belief that bankruptcy cases become a “billing bonanza” for legal counsel.
According to the article, there will be a bigger push for an additional eye, such as a fee examiner, to watch the legal bill meter during bankruptcy cases, due to larger cases tending to run tabs in the tens of millions of dollars.
To read the entire WSJ story, click here.