U.S. Code » Title 11 » Chapter CHAPTER 3— CASE ADMINISTRATION › Subchapter SUBCHAPTER II— OFFICERS

11 U.S.C. § 329

Debtor’s transactions with attorneys

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(a) 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.(b) 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—(1) the estate, if the property transferred—(A) would have been property of the estate; or(B) was to be paid by or on behalf of the debtor under a plan under chapter 11, 12, or 13 of this title; or(2) 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.)Historical and Revision Notessenate report no. 95–989

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.

Editorial NotesAmendments

1986—Subsec. (b)(1)(B). Pub. L. 99–554 inserted 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”.

Statutory Notes and Related SubsidiariesEffective Date of 1986 Amendment

Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Notes of Decisions
Cited in 895 cases (132 in the last 5 years), 1980–2026 · leading case: In re Hanawahine, 577 B.R. 573 (Bankr. D. Haw. 2017).
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In re Hanawahine, 577 B.R. 573 (Bankr. D. Haw. 2017). · cites it 9× “AMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW RE: UNITED STATES TRUSTEE’S MOTION TO COMPEL DISGORGEMENT OF FEES UNDER 11 U.S.C. § 329 AND TO SANCTION ATTORNEYS FOR VIOLATIONS OF 11 U.”
In Re Park-Helena Corp., Debtor. Neben & Starrett, Inc. v. Chartwell Fin. Corp., 63 F.3d 877 (9th Cir. 1995). · cites it 7× “Chart-well alleged, inter alia, that Park-Helena violated 11 U.S.C. § 329 and Fed.R.Bankr.P. 2014 and 2016 by failing to disclose that Meyer, rather than Park-Helena, had paid the retainer to Starrett out of Meyer’s personal account.”
Sundquist v. Bank of Am., N.A. (In re Sundquist), 566 B.R. 563 (Bankr. E.D. Cal. 2017). · cites it 8× “2 Federal Rule of Bankruptcy Procedure 2016(b) implements 11 U.S.C. § 329 by *596 requiring that every attorney for a debtor, regardless of whether the attorney plans to apply for compensation, must file a statement of compensation paid or agreed to be paid in connection with a…”
In Re Saturley, 131 B.R. 509 (Bankr. D. Me. 1991). · cites it 7× “11 U.S.C. § 329 ; B.R. 2017. Neither § 329 nor Rule 2017 is a recent innovation.”
Matter of Swartout, 20 B.R. 102 (Bankr. S.D. Ohio 1982). · cites it 10× “PRELIMINARY PROCEDURE This matter is before the Court upon the Trustee’s “Motion” that the Court, pursuant to 11 U.S.C. § 329 , determine the reasonable value of Debtor’s attorney’s services in the instant proceeding.”
In Re: William Kyle Kisseberth & Ekaterina Kisseberth, Debtors. Ronald R. Henderson v. William Kyle Kisseberth & Ekaterina Kisseberth, 273 F.3d 714 (6th Cir. 2001). · cites it 4× “See 11 U.S.C. § 329 (providing that the bankruptcy court may order disgorgement of any excessive fees charged “in connection with” a bankruptcy case).”
In re Harris-Nutall, 572 B.R. 184 (Bankr. N.D. Tex. 2017). · cites it 8× “§ 504 , and that the co-counsel agreement must be cancelled in accordance with 11 U.S.C. § 329 (b). As such, Allmand shall share in no part of the fees awarded to KB herein.”
In the Matter Of: Peter Francis Geraci, 138 F.3d 314 (7th Cir. 1998). · cites it 5× “Judge Fines consolidated the cases for the purpose of considering whether Geraci’s fees exceeded the “reasonable value” of his firm’s services under 11 U.S.C. § 329 (b). After conducting a hearing and determining that Geraci’s fees in fact were excessive, Judge Fines ordered…”
Matter of Liberal Mkt., Inc., 24 B.R. 653 (Bankr. S.D. Ohio 1982). · cites it 5× “profession does not, and a court cannot, obviate the purpose and intent of professional standards such as the American Bar Association guidelines promulgated in the Code of Professional Responsibility’s Disciplinary Rule 2-106. * The Court is under a duty to determine…”
In Re 5900 Assocs., Inc., Debtor. Fred J. Dery, Tr. v. Cumberland Cas. & Sur. Co., 468 F.3d 326 (6th Cir. 2006). · cites it 4× “Reporting is also required under 11 U.S.C. § 329 : (a) 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…”
Hale v. U.S. Tr., 509 F.3d 1139 (9th Cir. 2007). · cites it 4× “Hale argues that the right to a jury trial under the Seventh Amendment of the United States Constitution extends to determining the reasonableness of attorney fees in a bankruptcy proceeding, 3 notwithstanding 11 U.S.C. § 329 (b), which empowers a bankruptcy judge to make that…”
In Re C & P Auto Transp., Inc., 94 B.R. 682 (Bankr. E.D. Cal. 1988). · cites it 6× “” Disclosure Of Compensation Under 11 U.S.C. § 329 And Bankruptcy Rule 2016(b), July 18, 1988.”
Show all 895 citing cases →
— 11 U.S.C. § 329(a) — 7 cases
In re Ortiz, 496 B.R. 144 (Bankr. S.D.N.Y. 2013).
In re Jones, 505 B.R. 229 (Bankr. E.D. Wis. 2014).
In Re Devers, 33 B.R. 793 (D.D.C. 1983).
Pugh v. Clerk United States Bankr. Court (E.D.N.Y 2020).
Curtis Cole (Bankr. S.D. Tex. 2020).
— 11 U.S.C. § 329(b) — 1 case
Cristopher v. Mir (In Re Boh! Ristorante, Inc.), 99 B.R. 971 (9th Cir. BAP 1989).
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