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LegalText 11 U.S.C. § 504 Sharing of compensation us united_states_code code_section 11 BANKRUPTCY 5 CREDITORS, THE DEBTOR, AND THE ESTATE 504 11 U.S.C. § 504 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip /us/usc/t11/s504 data/legal/raw/us/code/title-11/usc11.xml a7f96aeae3ebde8a8b08ec65d74ea82ac47d736498ad41e38b5a4cc93b63af3f 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 eefd74f5354ca175f42b22f424ee905ccaa8719212c33dbda3e2b68cc1f28780 2026-07-04 official
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11 U.S.C. § 504 - Sharing of compensation

Text

(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 creditors 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.

(Pub. L. 95598, Nov. 6, 1978, 92 Stat. 2582; Pub. L. 1098, title III, § 326, Apr. 20, 2005, 119 Stat. 99.)

Notes

Historical and Revision Notes

senate report no. 95989Section 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.

Editorial Notes

Amendments2005—Subsec. (c). Pub. L. 1098 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2005 AmendmentAmendment by Pub. L. 1098 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. 1098, set out as a note under section 101 of this title.