Do Not Hide From Your Lawyer

Question: When is it a good idea to hide from your lawyer, refusing to return his calls and ignoring a pending court date?  Answer: never.

I experienced this situation last week in a case involving a Chapter 13 client who had completed almost 4 1/2 years of a 5 year plan, then ended up with a dismissed case.

My case involved a man who had retained me over 4 1/2 years ago to prepare and file a Chapter 13.  We filed the case and set up a payroll deduction to fund the plan.  For 4 years, the payroll deduction remained in place, then, on January 1 of this year the employer inexplicably decided to stop withholding funds.  My client obviously noticed this as a $300+ line item deduction suddenly disappeared from his paycheck, resulting in over $600 more take home each month.

My client did not advise about this change nor did the employer.  I found out about the funding problem with the trustee filed a Motion to Dismiss because of the funding delinquency.  Upon receipt of the motion, my secretary called my client and he responded that he knew about the problem and “would take care of it.”  I thereafter drafted and filed a written response to the motion to dismiss stating that we would cure the delinquency prior to the hearing date.

Thereafter – nothing.  As the hearing date drew closer, both my secretary and I called again and again, leaving messages.  We called his job, and confirmed that he was there but his employer does not allow workers to receive calls during the day.  We called his sister – a former client – but she did not call back.  We called his wife, but she did not return the call.  My client has no email so we could not use that method.

Finally the day of the hearing came.  I had a conflict so I sent an associate to appear at the calendar call.  My client was a no show.  His case is being dismissed.  What a pity.  After almost 4 1/2 years in a Chapter 13 my client will lose the benefit of a discharge and the benefit of a plan that provided for a 10% dividend to unsecured creditors.  Had he simply cooperated, I am certain that I could have worked out a deal with the trustee.  Instead, my client loses his discharge and will end up with creditor calls and probable lawsuits from creditors who are no longer have a bankruptcy stay to prevent collection efforts.

What is the lesson that can be learned here?  If something goes wrong in your Chapter 13 case – and you can be sure that there will be issues in every Chapter 13 – enlist your lawyer’s help.  Your lawyer has the expertise, perspective and knowledge to work out deals and keep your case afloat.  Ignoring your lawyers calls will not benefit you in any way.

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