Wednesday, January 20, 2010

Be Careful In Choosing A Bankruptcy Attorney

When choosing a bankruptcy attorney, one must be very cautious and make certain that the person is licensed to practice in the federal court and has the experience to properly assist you throughout the case. The recent case of Attorney Grievance Commission of Maryland v. Robaton, (Md. 11/16/09), is a good example of what can go wrong if you hire the wrong lawyer. The first clue of Mr. Robaton’s inadequacy was when he told his client that he needed to file the bankruptcy documents himself, as Robaton was not equipped to file them electronically with the court. He did represent the client at the meeting of creditors, but failed to appear at the confirmation hearing. At the confirmation hearing, the bankruptcy judge discovered that Mr. Robaton’s federal bar membership had expired and as a result, he was not admitted to the federal court and could not represent clients in federal court. Mr. Robaton was sanctioned with an indefinite suspension from the practice of law.

There have been unscrupulous attorneys who have been retained by clients to file bankruptcy on their behalf in order to stop a foreclosure, who only file an emergency petition and never follow up with their clients to file the rest of the paperwork. They also do not appear at the meeting of creditors or other court hearings. These debtors’ cases get dismissed, and then, if they want to file again, they need to open another case, pay another filing fee and attorney fee and are subject to the limitations of the automatic stay.

Because of the economic downturn, bankruptcy filings have increased. Attorneys with little or no experience in the field are filing cases in bankruptcy court. While some of these new attorneys attend educational seminars to learn the law, there are others who are filing cases without the knowledge of all that bankruptcy entails. Some of my clients have come to my office after their case were filed by one of these attorneys because the Trustee in their case advised them that their Schedules, Statement of Financial Affairs and/or Plan were not completed properly. It usually takes me longer to undo the mistakes than complete the papers from scratch. This delays the process for the client and prolongs the case.

Laura J. Margulies is a principal in the firm of Laura Margulies & Associates, LLC. We represent consumers in bankruptcy and litigation matters in Maryland and the District of Columbia.

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