Preparing the Motion
Draft a motion under Section 329(b) requesting the court to review and order disgorgement of attorney fees. Include: the fee agreement, total fees paid, total fees approved by the court (if different), a description of services that were and were not performed, and the relief requested (full or partial disgorgement).
Supporting Evidence
Attach the retainer agreement. Attach any billing records or invoices. Include a timeline showing key case events and attorney actions (or inaction). If the case was dismissed, explain how attorney negligence contributed. Compare fees charged to the district average for similar cases.
Filing and Service
File the motion with the bankruptcy court. Serve the attorney, the trustee, and the United States Trustee. The court will set a hearing. The attorney has the opportunity to respond and justify the fees.
What the Court Can Do
Cancel the fee agreement entirely and order full refund. Reduce fees to a reasonable amount based on services actually rendered. Order the attorney to disgorge the difference between what was paid and what was reasonable. Refer the matter to the state bar for disciplinary review.
Standing to File
Any party in interest can bring a Section 329(b) motion. This includes the debtor, the bankruptcy trustee, the United States Trustee, or any creditor. In practice, the U.S. Trustee's office reviews fee applications as part of its regular case oversight and frequently initiates disgorgement proceedings on its own. Debtors can also file these motions pro se, and courts will generally construe pro se filings liberally. There is no filing fee for a Section 329(b) motion because it is a motion within an existing bankruptcy case, not a new proceeding.
Timing Considerations
A disgorgement motion can be filed at any point during the bankruptcy case, and in some circuits, even after the case is closed. However, filing sooner is generally better. The longer you wait, the more likely the attorney has spent the fees and may be unable to repay them. If your case has been dismissed and you believe attorney negligence contributed to the dismissal, a disgorgement motion is particularly appropriate because the attorney was paid for a result that was never achieved. Courts have wide discretion in these matters and can reopen closed cases to address fee disputes when the circumstances warrant it.
Common Outcomes
Courts frequently order partial disgorgement, reducing fees to match the reasonable value of services actually performed. Full disgorgement is reserved for cases involving serious misconduct, such as failure to disclose the fee agreement, abandonment of the client, or fees so excessive that they shock the conscience. Many Section 329(b) motions are resolved by agreement before a hearing, as attorneys prefer to negotiate a partial refund rather than face a judicial finding of excessive fees on the record. For background on how fee disclosure works, see the fee disclosure guide. For information on the U.S. Trustee's role in fee review, see the UST fee review guide.
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