Debtor’s Counsel’s Duty of Due Diligence–How Much is Enough?

By: Fredrick E. Clement. Mr. Clement is a Certified Specialist in Bankruptcy Law by The State Bar of California Board of Legal Specialization.

“I’m so gullible. I’m so damn gullible. And I am so sick of me being gullible.” (Lana Turner) Attractive young movie starlets will be forgiven a lack skepticism. Bankruptcy lawyers will not.

The Bankruptcy Code and the Federal Rules of Bankruptcy Procedure each mandate that counsel attempt to confirm the client’s representations about assets, debts, income, expenses and financial history prior to filing the petition. Federal Rule of Bankruptcy Procedure 9011(b)(3) provides . . .

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