06 Apr Disclose Attorney Fees in Bankruptcy – Show Me The Money
A Bankruptcy Lawyer is required to inform the Court of how much money debtor has paid or will pay in attorney fees in contemplation of or in connection with a bankruptcy case. The Disclosure of Compensation form is filed, and signed by the attorney not by the debtor, in every case to identify payment received within one year before a case is filed, according to Section 329a of the Bankruptcy Code. There is no end date to the requirement. The disclosure period begins one year before the case is filed and continues to include all subsequently undisclosed payments. Bankruptcy Rule 2016b requires the filing of a disclosure statement (1) within 15 days of the order for relief, (2) at any other time as the Court directs, and (3) after any payment not previously disclosed. The disclosure requirement continues to include any payment received after a case is filed. This requirement is designed to prevent a debtor from depriving creditors of potential assets by transferring property to the attorney before filing; and to prevent a financially stressed and vulnerable debtor from overpaying for legal services.
Andy Miofsky, Esq.
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