CHAPTER 8 ETHICAL DILEMMAS

• Jurisdiction: United States

CHAPTER 8 - ETHICAL DILEMMAS

An attorney's competence in the law and ethics are essential to his bankruptcy practice. Good faith and good intentions are not enough. An attorney must understand and follow the law to obtain the best outcome for his client and avoid malpractice. Chapter 8 considers fee waivers, violating the automatic stay, and using artificial intelligence (AI) in one's practice.

Fee waivers in chapter 7 cases may be available to debtors who cannot afford to pay the filing fee. With fee waivers on the rise in consumer chapter 7 cases, courts have to balance the debtor's financial state, the needs of the court, and a debtor's opportunity to get a fresh start. Attorneys should seek fee waivers for the right debtors and consider working for a lower legal fee in those circumstances where a fee waiver is appropriate.

It may seem like most of the focus of the Bankruptcy Code, Rules, and courts is on making sure that debtors do not abuse the bankruptcy system. However, creditors and their attorneys cannot escape the court's ramifications when they violate the law and rules. There are certain rules that...