Act of May 8, 1963, Pub. L. 88-17, 77 Stat. 14
An Act To amend subdivision d of section 60 of the Bankruptcy Act (11 U.S.C. 96d) so as to give the court authority on its own motion to reexamine attorney fees paid or to be paid in a bankruptcy proceeding
Eighty-Eighth Congress, Session I · Approved May 8, 1963
Gives the court authority on its own motion to reexamine attorney fees. Under the rewritten section 60d, money paid or property transferred to an attorney in contemplation of a petition may be examined by the court on its own motion, or must be examined on petition of the trustee or any creditor, and is valid only to the extent of a reasonable amount, with the excess recoverable by the trustee. A new second paragraph lets the court examine, on its own motion or on the bankrupt’s petition before discharge, agreements to pay an attorney after the filing, canceling any excess obligation or returning any excess payment to the bankrupt.
This is an unofficial transcription, prepared by Robert J. Pfister for ease of reading and copying. The authoritative text is the United States Statutes at Large.
United States Statutes at Large (PDF, 2 pages) (opens in a new tab) Unofficial transcription (PDF, 1 page) (opens in a new tab)
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subdivision d of section 60 of the Bankruptcy Act (11 U.S.C. 96d) is amended to read as follows:
“d. If a debtor shall, directly or indirectly, in contemplation of the filing of a petition by or against him, pay money or transfer property to an attorney at law, for services rendered or to be rendered, the transaction may be examined by the court on its own motion or shall be examined by the court on petition of the trustee or any creditor and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the trustee for the benefit of the estate.
“If, whether before or after filing, a debtor shall agree orally or in writing to pay money or transfer property to an attorney at law after the filing, the transaction may be examined by the court on its own motion or shall be examined by the court on petition of the bankrupt made prior to discharge and shall be held valid only to the extent of a reasonable amount to be determined by the court, and any excess obligation shall be canceled, or if excess payment or transfer has been made, returned to the bankrupt.”
Approved May 8, 1963.