Title 11 — Bankruptcy
Chapter 3 — Case Administration
§ 329. Debtor’s transactions with attorneys
Statutory text
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 329
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2564
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2564Pub. L. 98–353 § 432(a) · 98 Stat. 333
Substituted · 11 U.S.C. § 329(a)
Pub. L. 98–353, § 432(a), substituted “or” for “and” after “in contemplation of”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–353, § 432(a), substituted “or” for “and” after “in contemplation of”.Enacted provision · exact public law section
(a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”.Pub. L. 98–353 § 432(b) · 98 Stat. 333
Substituted · 11 U.S.C. § 329(b)(1)
Pub. L. 98–353, § 432(b), substituted “estate” for “trustee”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 98–353, § 432(b), substituted “estate” for “trustee”.Enacted provision · exact public law section
(b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate”Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 title II § 257(c) · 100 Stat. 3088
Inserted · 11 U.S.C. § 329(b)(1)(B)
Pub. L. 99–554 inserted reference to chapter 12
Source evidence
Code amendment note
Subsec. (b)(1)(B). Pub. L. 99–554 inserted reference to chapter 12.Enacted provision · exact public law section
(c) Sections 321(a), 329(b)(1)(B), and 1106(a)(5) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “, 12, or 13”.Effective date note
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.
3 of 4 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
senate 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 Notes
Amendments1984–1986 · 2 rounds
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 Subsidiaries
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–554 effective 30 days after , 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 , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Credits
1978–1986 · 3 acts
- 1978Pub. L. 95–598, , 92 Stat. 2564
- 1984Pub. L. 98–353, title III, § 432, , 98 Stat. 370
- 1986Pub. L. 99–554, title II, § 257(c), , 100 Stat. 3114.
Show as published
(Pub. L. 95–598, , 92 Stat. 2564; Pub. L. 98–353, title III, § 432, , 98 Stat. 370; Pub. L. 99–554, title II, § 257(c), , 100 Stat. 3114.)