11 U.S. Code § 504 - Sharing of compensation
(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) 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.
(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, § 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.
2005—Subsec. (c). Pub. L. 109–8added subsec. (c).
Effective Date of 2005 Amendment
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