Examining Transactions Between a Debtor and the Debtor’s Attorney

U.S Code last checked for updates: Jan 30, 2025

Rule 2017.

(a)

Payments or Transfers to an Attorney Made in Contemplation of Filing a Petition or Before the Order for Relief.

On a party in interest’s motion, or on its own, the court may, after notice and a hearing, determine whether a debtor’s direct or indirect payment of money or transfer of property to an attorney for services rendered or to be rendered was excessive if it was made:

(1)

in contemplation of the filing of a bankruptcy petition by or against the debtor; or

(2)

before the order for relief is entered in an involuntary case.

(b)

Payments or Transfers to an Attorney Made After the Order for Relief Is Entered.

On motion of the debtor or the United States trustee, or on its own, the court may, after notice and a hearing, determine whether a debtor’s payment of money or transfer of property—or agreement to pay money or transfer property—to an attorney after an order for relief is entered is excessive. It does not matter whether the payment or transfer is made, or to be made, directly or indirectly, if the payment, transfer, or agreement is for services related to the case.

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 2, 2024, eff. Dec. 1, 2024.)