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Fifth Circuit Reverses Excessive “Disgorgement” Remedy in Case Which (Also) Applied Pro-Snax to Chapter 13 Case

Finding that 11 U.S.C. §329(b) limited the court to disgorgement of the actual amount received, the Fifth Circuit has reversed the most draconian penalties assessed against an attorney who represented a former chapter 13 debtor. However, the portions of the case that were not appealed raise serious...

Will the Fifth Circuit Clarify Pro-Snax?

For chapter 11 debtor's lawyers, Matter of Pro-Snax Distributors, Inc. , 157 F.3d 414 (5th Cir. 1998) [ an enhanced version of this opinion is available to lexis.com subscribers ] is like the sword of Damocles--constantly hanging over counsel's head and threatening to deny compensation when a...