Expert: Mark J. Markus- California Bankruptcy Attorney - 12/14/2007

Question
QUESTION: The trustee mailed a refund check made payable to me for over $1300.00 due to an unconfirmed chapter 13 to my attorney with an attached letter ordering them to return to me the debtor, but they refuse to give it me. They want me to sign it over to them. I have no outside agreement with them. I have refused to do it. Can they legally do that to me?

ANSWER: If you're asking whether your attorney can require you to sign over a check made payable to you, that depends on the retainer agreement you signed with them, as well as the laws of your State.  If you think it might be inappropriate you should check with the State Bar of whatever State you are in.

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QUESTION: I paid for the filing fee and credit counseling that was required to file the case. The $2499.00 what is referenced as the "no look" fee was to be paid in the wage earner plan. They actually held on to the check filed an affavidit for $4,800 over $2,000 more than the $2,500.00 legal fees and saying the trustee had the money and they actually had the money in their possession. They did not send the check back until five days after the filing date. They are willing to waive any additional fees they just want me to give them my check. Basically, misrepresentation, lying and bribing me their client. Because they told the check made payable to them is their money and not mine. They said the trustee sends them the money so they get paid. The trustee told me this is not true and they were instructed to forward the money to me.

Answer
Again, whether they can do this depends on the retainer agreement you signed with them as well as the local rules of your court, and the rules of the state bar of whatever state you are in.  You may be able to force them to turnover the money to you, but you will need to initiate legal action to do so.  This is not something I can assess and answer in this format.  My suggestion remains the same as before.  You need to contact the state bar where you live, and I would also suggest getting a new attorney to look into this.