Issue link: https://mbozikis.ufcontent.com/i/1422521
34 b. Professionals Section 327 of the Bankruptcy Code governs the trustee's or debtor-in-possession's employment of attorneys, accountants, appraisers, auctioneers and other professional persons. Generally, a professional must be approved by the court, may not hold or represent an interest adverse to the estate and must be "disinterested," as defined in Section 101 of the Bankruptcy Code. 11 U.S.C. § 327(a). According to Section 101(14), in order to be disinterested, a person (i) may not be a creditor, equity security holder, or an insider of the debtor, (ii) may not have been a director, officer, or employee of the debtor within the two years before the filing of the case and (iii) may not have an interest materially adverse to the interest of the estate or any class of creditors or equity security holders. The Bankruptcy Code provides three important exceptions to the disinterestedness requirements discussed above. First, a trustee may, with the court's approval, employ an attorney that has represented the debtor if such employment is for a "specified special purpose," other than representing the trustee in conducting the case, and if such attorney does not hold any interest adverse to the debtor or the estate with respect to the matter on which such attorney is to be employed. 11 U.S.C. § 327(e). Second, according to Section 327(c), a person is not disqualified from employment by the trustee in a case filed under Chapters 7, 11 or 12 solely due to such person's employment by or representation of a creditor. Third, a person is not disqualified from representing a debtor-in-possession solely because it was employed by or represented the debtor prior to the commencement of the case. 11 U.S.C. § 1107(b). If the trustee requests the employment of a professional under Section 327, Bankruptcy Rule 2014(a) requires that the trustee file with the court an application that specifies the facts demonstrating the necessity for the employment, the name of the person or entity to be employed, the professional services to be rendered, and the arrangement for compensation. The retention application must