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deception given by bankruptcy attorney

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brett badgett

Junior Member
What is the name of your state?North Carolina
Hello. I considered filing a chapter 13 bankruptcy in order to not lose my personal house due to a financial hardship. I had a partnership agreement with a fellow investor friend where I was given the money to buy an investment property along with the money needed to do repairs. We would split the profit when the property was sold. I told the attorney that I spoke to that I had a piece of property that showed on public record that I owned free and clear even though the money was given to me by a business partner during the initial meeting when we were going over my debt and personal assets. He told me that the court could convert me to a chapter 7 because of this investment property. At that time I told him that in no way did I want this investment property to be caught up in anything and that due to this I would not file a chapter 13 and proceeded to leave his office. He then told me that I could go to another attorney, file a deed of trust in my investor partners name and that way the court would not try to take this investment house and convert me to a chapter 7 and pay off all my creditors upon the sale of the property. I paid another attorney, filed a deed of trust in my partners name (The attorney told me my partner did not have to know about it and did not have to sign anything) and the next week I returned to his office with the deed of trust papers and thus filed a chapter 13. I feel the attorney purposely deceived me just to get me to file the 13. I was later informed by the court that the deed of trust my partner filed (apparently the court did not realize that my partner did not file the deed of trust but in fact I had filed it myself) had to be filed 90 days prior to my filing the chapter 13 in order to be valid. The very thing that I did not want to happen in fact happened. The court converted me to a chapter 7, took the investment property and is attempting to sell it, pay off all my creditors and then I receive what is left. Needless to say my business partner is furious with me for getting this property caught up in my bankruptcy and is wanting to take legal action against me for this. I was also furious with my attorney for his deception. He, to this very day, will not tell me why he did not inform me of the fact that the deed of trust had to be filed 90 days prior to me filing a chapter 13. If he had done so I would have had the option to file the deed of trust, wait the 90 days and then come back to file the chapter 13 or perhaps not file at all. This has caused me great hardship and pain. Is there any action that I can take against a dishonest attorney. I need help. Thanks.
 


wannabelwr

Junior Member
deceptive attorney

If you paid him prior to this event, I am of the opinion that he is obligated by law to give you proper representation, there-fore you may have a suit for misrepresentation or malpractice.
 

brett badgett

Junior Member
I am not sure what you mean. The attorney told me it would be $1600 total for me to file the chapter 13 but first I needed to get the deed of trust filed and then return to him with the deed of trust papers. When he received the papers from me then he took my $1600. I hope this answers your question. This attorney clearly took advantage of me. Of course he is not going to admit to any wrong doing. I have a court date coming up soon concerning this investment property. My total due to all creditors that filed a claim along with the fees the bankruptcy court will get is about $20,000. The chapter 7 trustee is requesting the judge allow him to sell the house for $40,000 which will only leave me $20,000. And this will be all I have to give back to my investor partner that gave me the money to buy the house. This means my partner will be out about $36,000 and he of course will be expecting me to make up the difference which certainly is not going to happen. I do not have that kind of money. All of this trouble that I am in now is due to an attorney not informing me properly, in fact lying to me just to get me to file a chapter 13. He knew the deed of trust had to be filed 90 days prior to the filing of the chapter 13 but decided not to tell me. He knew, because I strongly told him that under no circumstances did I want the property tied up in anything that I probably would not have filed a bankruptcy at all. I hope that there is something I can do about this. Please let me know what you think I should do next.
 
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Ladynred

Senior Member
Clearly the lawyer gave you bad advice in omitting the 90-day time frame requirement. You can always file a complaint with the state bar assn.
 

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