[CLBS] Payment

[Tyler McGee]

I've often heard of attorney's advising their client to take title loans on vehicles and then reaffirm the title loan reasoning that (1) it will take the vehicle under the exemption amount, and (2) they can use the money to pay for attorney fees. I'm fairly new at this, it seems to make sense but I've never felt comfortable advising a client to do this. 11 USC 526 seems to say that you should not advise a client to do this. Thoughts?

-----Original Message-----
From: clbs-bounces at admws.idaho.gov [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Cameron Phillips
Sent: Wednesday, June 20, 2012 11:06 AM
To: rgreenwood at greenwoodlaw.com
Cc: clbs at admws.idaho.gov
Subject: Re: [CLBS] Payment

Not to mention that lawyers specifically cannot advise their clients to incur any new debt to pay for any services to be rendered in connection with a bankruptcy case, or in "contemplation" of bankruptcy, per 11 USC 526, and  cash advances of more than $750  obtained within 70 days of a filing are presumed to be non-dischargeable.  (523(a)(2)(C).

Cam Phillips

On Wed, Jun 20, 2012 at 9:40 AM, rgreenwood at greenwoodlaw.com < rgreenwood at greenwoodlaw.com> wrote:

>
> Extremely bad idea.  Not withstanding the general rule that failure to 
> perform a promise to repay a debt it is not fraud, a promise made with 
> no intention of performing it is fraud.  It is unethical to counsel a 
> client to commit fraud.  And the lender has a real good shot at 
> non-dichargability.  While some may have done this and gotten away 
> with it, if the practice becomes widespread, rest assured the credit industrky will
> respond.   I once obtained a stipulated judgment to non-dischargability in
> a case where the lawyer counseled his client to take the maximum drawq 
> available on an overdraft protection line of credit and use the 
> proceeds to puerchase exempt proprty immediately before filing 
> bankruptcy.  The lawyer is now disbarred for other reasons, but the 
> advice, in my view, showed the lack of moral compass thatr eventually l;ed to the disbarment.
>
> I no longer practive law or bankruptcy, so take this for what its worth.
>
> Greenwood
>
>
> Original Message:
> -----------------
> From: Tyler S. Wirick tyler.wirick at wiricklaw.com
> Date: Tue, 19 Jun 2012 19:23:11 -0700
> To: clbs at admws.idaho.gov
> Subject: [CLBS] Payment
>
>
> Listmates,
>
> I recently herd of attorneys who counsel their chs. 7&13 clients to 
> pay their attorneys'  fees on the client's credit cards, which are 
> then included in the BK. I've also heard of attorneys taking in kind 
> payments for BK services.
>
> I have serious concerns regarding each of these payment schemes. Thoughts?
>
> Best regards,
>
> Tyler S. Wirick
> Law Offices of Tyler S. Wirick
> 250 Northwest Blvd. Suite 107A
> Coeur d'Alene, Idaho 83814
> Telephone: (208) 292-4200
> Fax: (208) 292-4201
> tyler.wirick at wiricklaw.com
>
>
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--
Cameron Phillips
Attorney at Law
924 Sherman Ave.
Coeur d'Alene, Idaho  83814

208 667 5437
208 664 2114 FAX

cam at camphillips.com
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