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Has anyone ever heard of foreclosing on an ira?
The use of the term foreclosure makes no sense here. Foreclosure is a term
used for a non-judicial sale of real estate based on deed of trust in which
the debtor voluntarily not only granted a lien, but also agreed to allow the
creditor to sell the property through the trustee per the deed of trust. It
is a creature of statute. The "foreclosure" aspect is that a trustee's sale
forecloses the debtor's equitable right to redeem the property after the
sale.
The attorney's lien is nothing more than a non-possessory, non-purchase
money voluntary lien. Unless there was documents signed naming the attorney
as a beneficiary and a trustee to foreclose, the attorney has nothing to
hang his hat on. He has an unperfected lien which he needs to levy on.
I also think this type of lien is very vulnerable to attack. CRPC 3-300
applies. Of course the lien has to be in writing, but the client has to be
given a reasonable opportunity to seek advice of independent counsel. I
wonder how often that actually occurs. If I were doing one, I would want to
document my file to show that client was given time to think it over.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
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I am virtually certain that there is a Rule in the Cal Rules of Professional Conduct that prevents a lawyer from taking a security interest in a client's assets (house for sure, but IF you could lien an IRA that should be included)as security for fees in almost all cases. If the rule can be circumvented, it would almost certainly require the lawyer to require his client to get independent legal counsel to review the giving of the lien. I say you take that case to trial and put the lawyer on the stand and show him that and ask him why he had his client sign a retainer agreement that violates the California Rules of Professional Conduct, then report him to the bar.
Jeff Smith
>
> Alright. Color me stumped. Former attorney is suing client for fees. Client files bankruptcy. Attorney argues in a 727 action that the attorneys lien in the fee agreement gives a lien on all proceeds from clients assets. While unemployed clients lives off of proceeds from the sale of real property and stops paying attorney. Attorney argues 727 has been violated because attorney did not get paid with the proceeds. Client is now back to work. Attorney wants to foreclose on the ira after he wins his fee case. He argues he can foreclose. Not levy, on the ira. Attorney admits he has never done it before, but has heard of it. So, has anyone here heard of it? As always thank you in advance.
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>
The post was migrated from Yahoo.
Alright. Color me stumped. Former attorney is suing client for fees. Client files bankruptcy. Attorney argues in a 727 action that the attorneys lien in the fee agreement gives a lien on all proceeds from clients assets. While unemployed clients lives off of proceeds from the sale of real property and stops paying attorney. Attorney argues 727 has been violated because attorney did not get paid with the proceeds. Client is now back to work. Attorney wants to foreclose on the ira after he wins his fee case. He argues he can foreclose. Not levy, on the ira. Attorney admits he has never done it before, but has heard of it. So, has anyone here heard of it? As always thank you in advance.
Sent via BlackBerry by AT&T
The post was migrated from Yahoo.