[CLBS] L&I checks

Randal French RFrench at bauerandfrench.com
Thu May 30 18:35:19 MDT 2013


What is an L&I claim?  I was assuming you meant an L&L claim but I am not certain.

The judgment is not a debt to the attorney but the contingency fee is a debt to the attorney, even if contingent, unliquidated or not yet mature.  11 USC 101(5).

Is this essentially a judgment that is collateral for an attorney charging lien within the meaning if Idaho Code 3-205?  One  annotation is Hopkins v Thomason Farms, Inc. Case no 03-42400, decision issued June 24, 2009, as I understand.  Also see the state court decision in Frazee v Frazee 104 Idaho, 463 660 P. 2d 928 (1983).

I would list the attorney as a creditor and give notice even if you mark the claim as disputed, contingent unliquidated and list it as unsecured 

Randy French
www.bauerandfrench.com


Bauer & French
Attorneys at Law
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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Catherine Dullea
Sent: Thursday, May 30, 2013 5:20 PM
To: 'Bankruptcy list'
Subject: [CLBS] L&I checks


Dear Listmates:
I have a chapter 7 client who receives payments on an L&I claim.  The attorney who successfully negotiated the settlement with L&I gets the checks, takes 25% and sends the remainder to client.  I was thinking it's not really a debt to the attorney, or is it?  It's certainly a claim of the attorney's.  I know I will deal with the set-off in the SOFA but am not sure whether to set attorney up as a creditor.  I would love my client to get all of his L&I.  Has anyone dealt with this or have an opinion?
--Katie Dullea
 
 
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