UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ALASKA

1. INTRODUCTION - Debtor in this chapter 11 case filed an application to employ Jack Sherman as an accountant at an hourly rate of $150 (Docket Entry 16, filed December 28, 1995). Bruce Nesbitt and his wife also filed a concurrent chapter 13 petition, Case No. F95-00722-HAR, R. Bruce Nesbitt, aka Rodney Bruce Nesbitt, and Vicki Ann Nesbitt, aka Vicki A. Nesbitt, Debtors, in which the debtors likewise applied to retain Sherman.

The United States Trustee filed an objection in both this chapter 11 case and the chapter 13 case because it alleges that Jack Sherman is not a certified public accountant and does not qualify as an accountant under 11 USC § 101(1) of the Bankruptcy Code.

I hold that the objection is not well taken and will allow the appointment of Sherman as accountant for debtor in this chapter 11 case, provided he is licensed under the state law. This decision only applies to this chapter 11 case.

2. 11 USC § 101(1) IS NOT LIMITED TO CERTIFIED PUBLIC ACCOUNTANTS; ALASKA RECOGNIZES OTHER TYPES OF PUBLIC ACCOUNTANTS -

11 USC § 101(1), under the definitions section of the Bankruptcy Code, provides:

In this title -

(1) "accountant" means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized;

Sherman's application does not say what type of accountant he        4 ABR 253   is, certified or not. Approval of his employment is conditioned on his being some type of accountant authorized to practice public accounting under AS 08.04, the Alaska Accountancy Act of 1960.

The act recognizes the legitimacy of public accountants who are not certified public accountants. The Board of Public Accountancy is, itself, composed of both CPAs and public accountants (as well as public members). AS 08.04.020.

DATED: January 11, 1996

HERBERT A. ROSS
U.S. Bankruptcy Judge