Bankruptcy Attorney Suspended For Giving Bad Advice To The Client

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Bankruptcy Attorney Suspended For Giving Bad Advice To The Client

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George Sadorus’ decision to hire a bankruptcy attorney over the internet proved to be harmful to him. He really should have heard the warning bells when his attorney had asked him to be dishonest with the Trustee about his inability to attend the 341 Meeting of Creditors.

A paralegal had advised Sadorus that $8,000 which was there in his bank account would be exempt in the bankruptcy. Later, the paralegal did not inform the attorney about the account, and thus the attorney filed Sadorus’ case without disclosing $8,000 in his account. As soon as the attorney realized his mistake, he asked Sadorus to lie to the Trustee about his inability to attend the otherwise compulsory 341 hearing. The attorney thought that if Sadorus’ case was dismissed, he would be able to spend $8,000 on necessary and reasonable living expenses and then re-file for bankruptcy.

The attorney then did not discuss about any remaining funds in the client’s account and re-filed the case. Thus, case 2 was filed with $5,000 in the client’s bank account. The client then attended the 341 hearing this time, told the truth to the Trustee and fired his attorney. The revelation surprised the Trustee, who then sued the debtor for his account’s contents. The attorney was also sued for the sanctions and discouragement of his fee. He was also suspended from all kinds of law practices in that state and was asked to take educational courses in general practice and ethics. He was also forced to return the retainer fee to the debtor.

Unfortunately, the attorney had returned the retainer fee to the debtor during the bankruptcy because of which it became the estate property and could be collected for the benefit of the creditors of the debtor. Thus, Sadorus had to suffer because of his wrong choice of the bankruptcy attorney. Because of the attorney’s poor advice, Sadorus had to lose $5,000 in his account and also $1,000, which was paid to the attorney.

We might get tempted to hire an inexpensive attorney, but it is more important to hire an experienced, trusted and a competent bankruptcy attorney than a cheap one. If you are considering filing for bankruptcy, contact the Recovery Law Group, best in Los Angeles & Dallas, TX, at or call on 888-297-6203.