Legal Question in Civil Litigation in California

Judgement bankruptcy

An attorney that i was in disagreement with regarding an outstanding balance i owed him, became ill and filed for bankruptcy. My outstanding balance became part of the estate through the bankruptcy. The estate attny hired a collection agency to collect on my/other outstanding balance. His bankruptcy/ estate has been closed. I did not pay. The collection agency is still after collection from me. If the bankruptcy/estate has been closed and the collection agency did not purchase the collection, how can they continue to collect from me?


Asked on 8/11/06, 5:39 pm

2 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

Re: Judgement bankruptcy

As Mr. Cohen said, if the bankruptcy action closed without litigation, the attorney may still pursue the debt.

Their are generally two types of collection efforts in California, which are confusing. In one situation, the collection agency actually purchases the debt, and obtains an assignment, which is where the attorney assigned his right to go after you for repayment on the debt.

In the other situation, the collection agency simply acts as your attorney's attorney, pursuing you through litigation to obtain a judgment on the collection against you and in favor of your former attorney.

Some attorney fee agreements have clauses that provide for the award of attorneys fees in the event that collection becomes necessary. A small fee that you owe to an attorney can become large really quick, through escalating collection agency's attorney's fees. The law in California has not denounced attorneys for having attorney's fees provisions in their retainer agreements at this time, and I would suggest that you contact a knowledgeable attorney in your area to examine your documents, the bankruptcy action, and the collection efforts to protect your rights before things get out of hand.

Very truly yours,

Read more
Answered on 8/16/06, 11:46 am
Robert F. Cohen Law Office of Robert F. Cohen

Re: Judgement bankruptcy

If the BK estate closed without litigating the collection action, then the BK estate abandoned the asset. It now belongs to your former attorney once again, and he/she can try to collect if the statute of limitation has not run.

Read more
Answered on 8/15/06, 8:13 pm


Related Questions & Answers

More General Civil Litigation questions and answers in California