What to do if my company has a borrower who engaged a lawyer to act on her behalf and now she has filed for bankruptcy?

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What to do if my company has a borrower who engaged a lawyer to act on her behalf and now she has filed for bankruptcy?

Her payment is due and we were told by the lawyer not to disturb the borrower as he is filing for her bankruptcy. Please advise can we go directly to the borrower for payment as the Bankruptcy is not ready yet?

Asked on October 12, 2012 under Bankruptcy Law, District of Columbia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Clients can always contact each other but lawyers can not contact clients when they are represented by other lawyers.  Here is the problem:  you say that the bankruptcy is not yet "set" but what does that mean? Has the petition already been filed and has the party listed your debt thereon?  If you sue and obtain a judgement then that judgement can be listed a well.  I might hire an attorney on a flat fee basis to contact the other attorney in an attempt to settle the debt.  Good luck.


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