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J. Pappas rules on Due Diligence re: Secured Debt
Posted: Fri Jan 16, 2009 12:26 pm
by Yahoo Bot
Wow, just read the case. Appers debtors wanted to keepa motorhome, owed mom money, and wanted to give mom a lien on the motorhome so mom would be repaid, and they would get to keep motorhome. BK lawyer sent the debtors to another lawyer to have the lien perfected.
Debtors decided not to use the other lawyer, lied to bk lawyer, saying they got the lien perfected
Bk lawyer filed case, debtors postpetition did perfect the lien, lost motorhome anyway, and Judge said Bk Lawyer should have checked the documents.
Whata wierd case! The trustee didn't object to the discharge (by not perfecting the transfer prepetition, no 727 hinder delay defraud issue) (but sill plenty of 727 issues by making the transfer postpetition)regardless, trustee just took the motorhome. Debtors complained and judge sanctioned lawyer 1/2 his fee, not for filing an obvious 727 problem debtor, but for not making sure the 727 violation occurred!
dennis
The post was migrated from Yahoo.
J. Pappas rules on Due Diligence re: Secured Debt
Posted: Thu Jan 15, 2009 9:56 am
by Yahoo Bot
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3) ATTORNEY LOSES HALF HIS FEE BECAUSE HE DIDN'T VERIFY HIS CLIENT'S STORY
An Idaho attorney was ordered to return half of the fee he received in a
Chapter 7 case because he relied on his clients' representation that their
motorhome was collateral for a properly perfected security interest granted
to the debtor-wife's mother. Judge Jim D. Pappas ruled that attorney Kelly
I. Beeman violated Section 707(b)(4)(D) by failing to make an adequate
inquiry into the information stated in the debtors' schedules. (In re Dean,
No. 08-00227-JDP (Bankr. D. Idaho 12/16/08).)
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3) ATTORNEY LOSES HALF
HIS FEE BECAUSE HE DIDN'T VERIFY HIS CLIENT'S STORY
An Idaho
attorney was ordered to return half of the fee he received in a Chapter 7 case
because he relied on his clients' representation that their motorhome was
collateral for a properly perfected security interest granted to the
debtor-wife's mother. Judge Jim D. Pappas ruled that attorney Kelly I. Beeman
violated Section 707(b)(4)(D) by failing to make an adequate inquiry into the
information stated in the debtors' schedules. (In re Dean, No.
08-00227-JDP (Bankr. D. Idaho 12/16/08).)
The post was migrated from Yahoo.