Notes on 11 U.S.C. § 329 : US Code - Notes

Search Notes on 11 U.S.C. § 329 : US Code - Notes

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2564; Pub. L. 98-353, title
III, Sec. 432, July 10, 1984, 98 Stat. 370; Pub. L. 99-554, title
II, Sec. 257(c), Oct. 27, 1986, 100 Stat. 3114.)
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.
AMENDMENTS
1986 - Subsec. (b)(1)(B). Pub. L. 99-554 inserted reference to
chapter 12.
1984 - Subsec. (a). Pub. L. 98-353, Sec. 432(a), substituted "or"
for "and" after "in contemplation of".
Subsec. (b)(1). Pub. L. 98-353, Sec. 432(b), substituted "estate"
for "trustee".
EFFECTIVE 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.