How do you find an attorney to take over a Chapter 11 after the original attorney, never having done a Chapter 11 got it kicked?

Cobb, CA Viewed 74 times. Posted 6 months ago in Foreclosure

We have a third on a campground in Northern California we sold to my son-in-law in 2005. He had a bridge loan that became due just as the loan market went south. He had to file for bankruptcy. An investor in the project had his daughter file the paper work for a Chp 7 and then convert to an 11. She admittedly did not know what she was doing. The judge gave son-in-law 150 days to find a new attorney and get a plan approved. About twenty days later his attorney goes to court and says: debtor had been using collateral funds, (she had approved). She asked to be freed of the case, so the judge freed her and ended the relief of stay. The first is preceding with the foreclosure, the property being their sole income. Is there a way to save our investment and keep the bankruptcy open?

Answers (1)

Michael Hassen

This attorney is licensed in California. Posted 5 months ago.

Your fact summary is very difficult to follow. It sounds as if your son-in-law had an attorney, and that the attorney asked to withdraw as counsel because he was using the debtor's funds in violation of a court order. This may explain why the judge also granted relief from stay to the senior lender. The court order granting relief from stay does not "close" the bankruptcy...it remains open. I recommend that your son-in-law immediately retain new counsel. If you need a referral, you can contact your local state or county bar association.