Federal watchdogs are preparing to exert more control over costs in big bankruptcy cases. In the initial push, the first overhaul of guidelines intended to keep costs in check in about 17 years is expected to be unveiled by July 1. It aims to tamp down on fee and expense applications submitted by attorneys for corporate debtors and sometimes creditors. Next in line: revisions of existing guidelines for other bankruptcy professionals, such as financial advisers and bankers. No timeline has yet been set for those efforts. The challenges come from the U.S. Trustee Program, the wing of the Department of Justice that monitors bankruptcy cases and that is handling the guidelines, as well as some bankruptcy judges. More in the Wall Street Journal here.
