U.S. Court of Appeals for the 9th Circuit
Apr. 16, 2016
Bankrupt lawyers can get out of paying debts they owe clients, 9th Circuit rules
Court rules that a client fee can be written off under bankruptcy law.
Daily Journal Staff Writer
Lawyers going through bankruptcy can get out of paying debts they owe clients, the 9th U.S. Circuit Court of Appeals ruled Thursday.
That's welcome news for Marilyn Scheer, who had been ordered by the State Bar to return money to a client, and when she didn't, temporarily suspended her law license. Scheer then filed for bankruptcy and sought to have her license reinstated, arguing that the bank...
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