Non Notification of Bankruptcy

[Lynn62]

What is the name of your state? FL

I hired an attorney to handle the sale of my Sub Chapter S Corporation in 2001. Said attorney drew up an Agreement and Purchase of Sale along with a Security Agreement and UCC Filing of Inventory in August of 2001. In September of 2003 after several months of non-payment I became concerned when I heard that the business in question had not been operational, I immediately contacted the attorney, his advise was to contact the local police department, which I did.

During the investigation the attorney gave the police department a document stating that the buyer had been discharged from a Chapter 7 Bankruptcy. I was never notified that the buyer had even filed Bankruptcy, but according to documentation the attorney was. I received a copy of the Bankruptcy, on January 24th 2005, which to my dismay confirmed the fact that the attorney was notified of the pending Bankruptcy of the buyer.

I tried to contact the attorney on the following dates and times, January 24th 2005 at 12:14 pm and again on January 31st 2005, to question them as to why I was never notified of the buyers filing of Bankruptcy, and why the court was never notified that the debt was indeed secured by the UCC filing that was filed by the attorney, my calls went unanswered. I did however send a request by certified mail, for any paperwork that pertained to the buyer and the lien that was placed on the home as well as anything that was related to the Bankruptcy to be released to me, and I finally did receive the papers I requested from their office, but to date the attorney has never returned a phone call.

I have tried to hire a different attorney to notify the Bankruptcy Courts that this was a mistake and that my debt is secured, however the attorney has informed me that since the original attorney was notified he should have notified the Bankruptcy Courts right away that I was a secured debt, since a UCC filing was filed with the state of Florida. I feel that the attorney did not take the proper steps to ensure that his client’s best interest was protected.

Do I have any recourse and does this qualify as malpractice?

 

[Lynn62]

No one has any advise at all surely this has happened before?

 

[Lynn62]

ANY Comments would be helpful in this matter.

 

[seniorjudge]

What is the name of your state? FL

I hired an attorney to handle the sale of my Sub Chapter S Corporation in 2001. Said attorney drew up an Agreement and Purchase of Sale along with a Security Agreement and UCC Filing of Inventory in August of 2001. In September of 2003 after several months of non-payment I became concerned when I heard that the business in question had not been operational, I immediately contacted the attorney, his advise was to contact the local police department, which I did.

During the investigation the attorney gave the police department a document stating that the buyer had been discharged from a Chapter 7 Bankruptcy. I was never notified that the buyer had even filed Bankruptcy, but according to documentation the attorney was. I received a copy of the Bankruptcy, on January 24th 2005, which to my dismay confirmed the fact that the attorney was notified of the pending Bankruptcy of the buyer.

I tried to contact the attorney on the following dates and times, January 24th 2005 at 12:14 pm and again on January 31st 2005, to question them as to why I was never notified of the buyers filing of Bankruptcy, and why the court was never notified that the debt was indeed secured by the UCC filing that was filed by the attorney, my calls went unanswered. I did however send a request by certified mail, for any paperwork that pertained to the buyer and the lien that was placed on the home as well as anything that was related to the Bankruptcy to be released to me, and I finally did receive the papers I requested from their office, but to date the attorney has never returned a phone call.

I have tried to hire a different attorney to notify the Bankruptcy Courts that this was a mistake and that my debt is secured, however the attorney has informed me that since the original attorney was notified he should have notified the Bankruptcy Courts right away that I was a secured debt, since a UCC filing was filed with the state of Florida. I feel that the attorney did not take the proper steps to ensure that his client’s best interest was protected.

Do I have any recourse and does this qualify as malpractice?

If you think the attorney violated his canon of ethics contact the Florida Bar:
FLORIDA
The Florida Bar
650 Apalachee Pkwy.
Tallahassee, FL 32399-2300
904-561-5600

If you think his malpractice caused you damage, sue him.

 

[Lynn62]

I contacted the Flordia Bar and complied with their request in writing along with the paper work backing up my complaint.
Thank You

 

[Lynn62]

Here is a copy of the rebuttal statement sent to the Florida Bar. Do you feel I am justified in feeling my attorney is negligent? I have had not heard back from the bar yet. They have told me to hire an attorney. Am I throwning more money away or do you feel I have a legit malpractice claim?


I have contacted the Bankruptcy Clerk’s Office at the Sam M. Gibbons United States Courthouse located Tampa, Florida, on Thursday April 14th 2005 at 4:20 pm. I spoke with Jill I gave her the case number (XXXXXXXXXXX) for Ms. W's Bankruptcy, Jill stated the letter of commencement was indeed sent to My Attorney on June 7th 2003, to his address.
My question still goes back to my original letter, why my attorney never notified the Courts or Myself regarding Ms. W's bankruptcy. My Attorney's rebuttal states that no proof of claim was to be filed but my debt was secured per my UCC filing with the state that My Attorney filed himself. On the bankruptcy papers I was listed as a creditor holding an unsecured nonpriority claim. I feel My Attorney was negligent in the handling of this matter, I hired him to protect my interests and I feel he has not done that, I believe that our court system does everything that it can to make sure that everyone involved in a bankruptcy is notified, I find it very disturbing that I am being lead to believe that I lost my rights to collect a debt owed to me. How can someone sell something that does not belong to them use that money to pay bills incurred then claim bankruptcy towards the owner of that property? I have done some reading on this matter and I have read that:
Not all debts are dischargeable. For example, the following debts are generally not dischargeable: taxes; spousal and child support; student loans; criminal fines and penalties; debts arising out of willful or malicious misconduct; liability for injury or death from driving while intoxicated; nondischargeable debts from a prior bankruptcy. Those debts, which are secured, may be discharged; however, the creditor will probably take the necessary legal steps to take back the property.
I feel Ms.W did indeed act in a malicious manner as to sell my property and then to file bankruptcy against me and that I was not allowed by failure of notification by my attorney to try and recover my property or notify the courts as to the fraud committed by Ms. White.
My Attorney waited until the Police Department showed up to give them a document stating that Ms. W had been dismissed from her bankruptcy and that there was no reason to pursue the matter further. Why did I never receive the notice that she had been dismissed from a bankruptcy that he claims he wasn’t notified of to start with? I’m not an attorney, but if I received a notice of that nature with no Letter of Commencement in my clients file I believe it would be a reasonable assumption that something was wrong. I was actually notified by the Police Department that Ms. W's bankruptcy had been dismissed. I contacted My Attorney's office to request all of the paperwork to try and determine how something like this could have happened; his response was to send some paperwork along with a bill for $161.50. I feel that my attorney made the difference between me being able to collect my debt and not being able to.
I am attaching a copy of my initial complaint filed with the Police Department (exhibit A) in which Ms. W told Sgt. M on the telephone that she did sell some of the equipment to cover the rent that was due. My Attorney's letter regarding the security (inventory) being disposed of states, “Who did this I do not know” Ms. W was responsible for the security and should be held accountable for what happened to it. The security belonged to me, it never belonged to Ms White and she did not have the right to sell my property and then to declare bankruptcy against me.
The following is a brief run down of what I’m losing out of my pocket:
· I have a judgment in the amount of $12,026.00 and court costs of another $120.50 (exhibit B) plus the $161.50 that My Attorney has now billed me for (exhibit C).
· Ms. W also ran up a $638.56 electric bill that I have not been able to collect from her, this amount has been paid in full from my pocket. (exhibit D).
· I also have on my credit report a “Charged off as Bad Debt” for $2376.00 (exhibit E) for a piece of equipment that Ms. W quit making payments on. I paid Lease Co. $250.00 towards this bill as a settlement (exhibit F) but the total amount still shows on my credit report I have never had any remarks like that associated with my credit before this.
· None of the above mentioned monies include any part of the 12% interest per annum that My Attorney included in the contract between Ms. W and Myself should she default, the payment of attorney fees, nor the bills that Ms. W ran up in my name. Which when calculated add up to almost $19,650.00.