California: Bankruptcy Lawyer Misconduct Listed In Suspension Order

The issues at hand in this particular case is the fact the attorney handed most of the duties to non-attorneys including his wife. His assistant was conducting initial interviews with clients and advising them as to what chapter bankruptcy should file. His thought process was likely that of his wife, who is Vietnamese, would relate to clients of the same nationality in a way to win their business. However, due to the fact those non-attorneys allowed to advise clients of how to proceed or they can be charged with unauthorized practice of law. In addition to allowing non-attorneys to do most of the work with and for the clients Mr. Margolis allowed his clients to hide assets that they wanted to keep after the filing took place. Finally paperwork was filed with the court without client signatures resulting in many inaccuracies.

The rule of law violated was Rule 9011. The bankruptcy court made an immediate decision regarding the practice of law by Joel Margolis before the state bar association could respond. It was determined that Mr. Margolis should be suspended for 30 days, pay a $7500 fine, and $5000 relieved if the attorney agreed not to file additional claims without debtor signature and to refund the $2400 in fees paid to him for cases filed illegally. As well the attorney was required to take educational classes prior to filing future bankruptcy claims.

Attorneys who have no concern for the client and with the documents presented in court should not be allowed to continue practicing law before they demonstrate in at least a class room setting that their mind set has changed. As well as paying all clients back that were not treated fairly.


All the case information can be viewed on the bankruptcy law network website. http://www.bankruptcylawnetwork.com/2010/05/10/bankruptcy-lawyer-misconduct-listed-in-suspension-order/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+BankruptcyLawNetwork+%28Bankruptcy+Law+Network%29