“Severing” a Chapter 13 Bankruptcy

: Chris Lee Law Firm

  Filed under: Filing Bankruptcy

motion to sever, conflict of interest, divorce, joint bankruptcy, bankruptcy, attorney, attorneys, lawyer, lawyers, texas, tx, bankruptcy, student loan, employer, texas, tx, dallas, wichita falls, hurst, fort worth,When a couple decides to file for bankruptcy together, the attorney they employ must represent both parties at the same time. He cannot do something for one of the Debtors that could hurt the other Debtor. Severing a bankruptcy is a good example of something that has to be agreed on by both of the Debtors.

The bankruptcy attorney would need to get a signed statement from both parties that they want their Chapter 13 case severed. If the attorney does not have the agreement of both individuals, then the Motion to Sever the Chapter 13 case cannot be filed before the courts. The reason for the attorney not being able to file, even if one of the individuals is clearly not making part of the required payments or if they have even disappeared and cannot be found, is that the attorney represents both parties. By filing the motion to sever, he is in essence choosing one party over the other. This would be akin to tossing one of the parties out of the bankruptcy in favor of the other party.

By choosing one party over the other there may well be a conflict of interest for the bankruptcy attorney. The best course of action for the party who wants to sever the case would be to allow the case to be dismissed, try and get the other party to agree, or hire a second attorney to appear as special counsel and file the motion on that parties behalf. Generally, none of the options are appealing to the party who wants the case severed, but they are the only options available. Be sure to talk to a qualified Dallas bankruptcy attorney if you have any questions with regard to severing or any other bankruptcy issues.


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