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Bankruptcy lawyers reject increased DOJ oversight of fees

Proposed regulations would require disclosure of billing practices, budgeting

Bankrupt companies may have to fear their lawyers more than their creditors, at least according to Department of Justice (DOJ) officials.

Members of the agency’s U.S. Trustee Program convened a public meeting Monday to discuss proposed guidelines that would increase government oversight of Chapter 11 filings by companies with more than $50 million in assets. Under the new rules, law firms working these cases would have to disclose their Chapter 11 billing rates and fee applications, stop rounding up billable hours and work within preset budgets.

Alanna Byrne

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