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Three Chapter 7 Cases - Fee Disgorgement Ordered for Disclosure Violations

The United States Bankruptcy Court for the Northern District of Mississippi granted in part motions filed by the United States Trustee to examine attorney fees in three Chapter 7 cases (Case Nos. 24-11399, 24-11641, and 24-14079) involving The Law Office of Denvil Crowe. The court found that counsel failed to disclose the full amount of compensation received as required by 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure 2016(b), warranting disgorgement of the undisclosed portion of retainer fees ranging from $10,016 to $12,077 per case. The court declined to order full disgorgement given the small discrepancies, absence of bad faith, and value of services provided.

In re: Shumpert/Landy/Johnson - Chapter 7 Attorney Fee Disgorgement Order

The United States Bankruptcy Court for the Northern District of Mississippi issued a memorandum opinion and order on March 26, 2026, granting in part and denying in part Motions to Examine Fees filed by the United States Trustee against The Law Office of Denvil Crowe in three Chapter 7 cases (In re Shumpert, Case No. 24-11641-SDM; In re Landy, Case No. 24-11399-SDM; In re Johnson, Case No. 24-14079-SDM). The Court found that the Firm failed to disclose the full amount of compensation received as required by 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure 2016(b), warranting disgorgement of the undisclosed portion. However, the Court declined full disgorgement, finding the disclosed portions of flat-fee retainers (ranging from $10,450 to $12,500) reasonable under § 329(b) and Rule 2017 given the absence of bad faith and the value of services provided.

Attorney Fee Disgorgement in Three Mississippi Chapter 7 Cases

The United States Bankruptcy Court for the Northern District of Mississippi issued a memorandum opinion and order addressing motions filed by the United States Trustee to examine flat-fee retainers paid to The Law Office of Denvil F. Crowe in three Chapter 7 bankruptcy cases. The Court found that counsel failed to disclose the full amount of compensation received under 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure 2016(b), warranting disgorgement of the undisclosed portion. The Court declined full disgorgement, finding the disclosed fees reasonable under § 329(b) given the absence of bad faith and value of services provided.