875. Fee Agreement—18 U.S.C. § 155

The intent of the section is to prevent parties in interest from dividing up the bankruptcy estate outside the control of the bankruptcy court. The term "party in interest" is not defined in either Title 11 or Title 18 but essentially covers anyone involved in a bankruptcy case. This section covers all agreements, whether expressed or implied, to pay fees or compensation from the assets of the bankruptcy estate. The fees or compensation being "fixed" must (1) relate to a bankruptcy case, (2) be paid from the assets of the bankruptcy estate, and (3) be for services related to the bankruptcy estate.

18 U.S.C. § 155 provides:

A violation of this statute is a Class A misdemeanor. This section prohibits, in connection with a bankruptcy case, fee fixing agreements between parties in interest for services rendered-- but only if the payments are to come from the assets of the bankruptcy estate. Therefore, payments on pre-existing debts, payments by the debtor for services with post-petition earnings and purchases of property from the bankruptcy estate are not covered by this statute.