Source: http://www.law.cornell.edu/uscode/text/11/329?quicktabs_8=3
Timestamp: 2013-05-20 08:45:37
Document Index: 404634072

Matched Legal Cases: ['§ 329', '§ 329', '§ 329', '§ 432', '§ 257', '§ 432', '§ 432']

11 USC § 329 - Debtor’s transactions with attorneys | Title 11 - Bankruptcy | U.S. Code | LII / Legal Information Institute
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11 USC § 329 - Debtor’s transactions with attorneys
Any attorney representing a debtor in a case under this title, or in connection with such a case, whether or not such attorney applies for compensation under this title, shall file with the court a statement of the compensation paid or agreed to be paid, if such payment or agreement was made after one year before the date of the filing of the petition, for services rendered or to be rendered in contemplation of or in connection with the case by such attorney, and the source of such compensation.
If such compensation exceeds the reasonable value of any such services, the court may cancel any such agreement, or order the return of any such payment, to the extent excessive, to—
the estate, if the property transferred—
would have been property of the estate; or
was to be paid by or on behalf of the debtor under a plan under chapter 11, 12, or 13 of this title; or
the entity that made such payment.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2564; Pub. L. 98–353, title III, § 432,July 10, 1984, 98 Stat. 370; Pub. L. 99–554, title II, § 257(c),Oct. 27, 1986, 100 Stat. 3114.)
This section, derived in large part from current Bankruptcy Act section 60d [section 96(d) of former title 11], requires the debtor’s attorney to file with the court a statement of the compensation paid or agreed to be paid to the attorney for services in contemplation of and in connection with the case, and the source of the compensation. Payments to a debtor’s attorney provide serious potential for evasion of creditor protection provisions of the bankruptcy laws, and serious potential for overreaching by the debtor’s attorney, and should be subject to careful scrutiny.
Subsection (b) permits the court to deny compensation to the attorney, to cancel an agreement to pay compensation, or to order the return of compensation paid, if the compensation exceeds the reasonable value of the services provided. The return of payments already made are generally to the trustee for the benefit of the estate. However, if the property would not have come into the estate in any event, the court will order it returned to the entity that made the payment.
The Bankruptcy Commission recommended a provision similar to this that would have also permitted an examination of the debtor’s transactions with insiders. S. 236, 94th Cong., 1st sess, sec. 4–311(b) (1975). Its exclusion here is to permit it to be dealt with by the Rules of Bankruptcy Procedure. It is not intended that the provision be deleted entirely, only that the flexibility of the rules is more appropriate for such evidentiary matters.
1986—Subsec. (b)(1)(B). Pub. L. 99–554inserted reference to chapter 12.
1984—Subsec. (a). Pub. L. 98–353, § 432(a), substituted “or” for “and” after “in contemplation of”.
Subsec. (b)(1). Pub. L. 98–353, § 432(b), substituted “estate” for “trustee”.