Interim Compensation (Financial Restructuring & Bankruptcy Glossary)

Summary

The payment of fees and reimbursement of expenses that a retained bankruptcy case professional seeks to collect, on an interim basis, by submitting an application for an award of fees and reimbursement of expenses every 120 days or more often if permitted by the bankruptcy court. Professionals may be paid only pursuant to a bankruptcy court order once the application has been filed under section 330 of the Bankruptcy Code provided that the compensation and expense reimbursements sought are actual, reasonable, and necessary to the administration of the bankruptcy case. Following confirmation of a plan, the professional will seek final approval from the court of all fees and expenses awarded during the case.