[CLBS] Payment

[rgreenwood at greenwoodlaw.com]

My case predated the amendment that created the presumption as to certain
cash advances, but you are correct.  Another reason it is a bad idea.

As to prohibition against advising client to incur new debt, I am not as
adamant.  My philosophical view is that Congress has no business dictating
the practice of law, including the advice a lawyer gives a client -- that
is a matter for state regulators.  At one time there was some debate over
whether this portion of the '05 amendments was constitutional, but I don't
know how it played out.  I can certainly envision circumstances where
incurring debt "in contemplation" of bankruptcy might well be appropriate
and non-fraudulent.

Original Message:
-----------------
From: Cameron Phillips camphillipslaw at gmail.com
Date: Wed, 20 Jun 2012 10:05:35 -0700
To: rgreenwood at greenwoodlaw.com, tyler.wirick at wiricklaw.com,
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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