What Is Fee Disgorgement?
Fee disgorgement is a court order requiring an attorney to return some or all of the fees collected from a bankruptcy client. Under Section 329(b), if the court determines that fees exceed the reasonable value of services, it can cancel the fee agreement entirely or order a partial refund.
This remedy is available within the bankruptcy case itself -- you do not need to file a separate malpractice lawsuit to get your fees back.
When Courts Order Disgorgement
Attorney failed to disclose compensation as required by Section 329(a). Fees exceed reasonable value for the complexity and results of the case. Services were not actually performed despite fees being collected. Attorney was suspended or disbarred during the case. Fee agreement was unconscionable or obtained under duress.
How to Request It
File a motion under Section 329(b) with the bankruptcy court. Include the fee agreement, billing records if available, a timeline showing what work was done (or not done), and the court-approved fee amount versus what was actually collected. The United States Trustee can also initiate fee review. Full Section 329 guide.
Learn more about Section 329
Section 329 Guide