What Must Be Disclosed
All compensation paid or agreed to be paid for services rendered in connection with the bankruptcy case. This includes retainer fees, flat fees, hourly fees, bonuses, and any other form of compensation. The disclosure must also cover payments made within one year before filing.
When to Disclose
The attorney must file the disclosure statement within 14 days of the petition. Failure to disclose is itself a ground for disgorgement -- courts presume that undisclosed fees are excessive.
Bankruptcy Rule 2016
Rule 2016 requires attorneys to file an application detailing compensation received or to be received, the services rendered, and the source of compensation. This rule works with Section 329 to create a complete picture of attorney compensation.
Red Flags
Fee agreement not filed with the court. Fees collected before filing that exceed the court-approved amount. Payments from third parties not disclosed. Fee-splitting arrangements not disclosed. Retainer agreements with non-refundable clauses.
Learn about fee disgorgement
Back to Section 329 Guide