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In re Dunn (Case No. 11-60847) 08/18/2011

            The Court issued an order directing the debtor to cure deficiencies in the petition and schedules.  Counsel failed to do so on behalf of the debtor, and then the Court issued an order directing the debtor to appear and a show cause why the case should not be dismissed.  Counsel appeared and represented she would file the requisite pleadings; she failed to do so.  The Court filed an order directing counsel to appear and show cause why case should not be dismissed; counsel did not receive notice and did not appear.  New counsel replaced this counsel and informed the Court that the debtor had paid the original counsel $6,500.

            The Court then issued a show cause why original counsel should not be ordered to disgorge fees received by her in the amount of $6,500.00 and further show cause why she should not be sanctioned for failing to file pleadings with the Clerk of this Court as she had represented and for otherwise abandoning her client.  The Court found the only benefit to the debtor was the filing of the petition thus stopping a foreclosure.  The Court thus ordered her to disgorge $5,000 of the $6,500 fee.

Date: 
Thursday, August 18, 2011
Category: 
Attorneys Fees
Chapter 13 Issues
Compensation
Sanctions and contempt
Chapter: 
13