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By M. Jonathan Hayes
These days, in any gathering of attorneys, I’m often the oldest guy in the room, so I get to pontificate a little. As a bankruptcy attorney for 45 years, I rarely set foot in a state court, and when I do, I feel like a cat in a room of rocking chairs. And vice-versa I’m sure.
I wanted to share a quick little story about a recent bankruptcy court hearing I attended in front of a well-known and respected bankruptcy judge in Los Angeles. I was on Zoom waiting for my matter to be called, listening to two state-court attorneys sniping at each other, insisting at every turn that they should get sanctions from the other. After a few minutes, the judge stepped in, friendly but firm:
“Enough with the sanctions.”
She paused, musing about it a little, then continued, “I don’t know what I’m going to do with you two. Perhaps, I don’t know, I’ll order you both to go have a cocktail together.” Another pause. Or maybe I’ll call your mothers and ask them to talk to you about being civil to each other.”
And just like that, the tension in the (virtual) room disappeared.
In my own practice, I have been chewed out many times for filing a bankruptcy petition for a person the attorney is chasing. I’m told I’m in big trouble now, the Sword of Hercules is aimed at me. After listening politely, I often respond, “Do you have the bankruptcy schedules? No? What’s your email, I’ll send them to you now. I’ll include the notice of bankruptcy which has the various deadlines in the case. And if you file a complaint for nondischargeability, I’ll accept service.” It’s often that the attorney calms down, the temperature drops, and we start talking without the histrionics. I’m not the enemy.
I don’t know how things went off the rails. I often meet with people considering bankruptcy because of litigation they are embroiled in; trial in a few weeks, attorney wants to be paid, fees they cannot afford. They are exasperated. I review the pleadings, filled with personal attacks between counsel, and I’m grateful that isn’t my world.
Bankruptcy is about assets. Bankruptcy was invented to help creditors. It is a process to divide up the pie equitably among the creditors. The overwhelming precept is disclose, disclose, disclose. Bankruptcy attorneys typically know each other and the judge very well. You have to show your cards. It’s not a game to be won or lost. Have a cocktail with your opponent. He or she probably loves the Dodgers as much as you do.