Lawyer can't avoid $364K contempt sanction by filing Chapter 7 bankruptcy, court rules
A Michigan lawyer who was held in civil contempt and ordered to pay nearly $364,000 in sanctions for violating a court order and helping a client sell an insurance firm can’t discharge the debt by filing a Chapter 7 bankruptcy case, a bankruptcy court has ruled.
Finding that attorney David Charron’s violation of the Kent County Circuit Court order was willful and malicious, Judge James Boyd said it is not dischargeable in the Western District of Michigan bankruptcy case, according to the he Wall Street Journal’s Bankruptcy Beat blog, which provides a link to the court’s Wednesday opinion (PDF).
It would appear that Charron may still be able to attempt to get the bankruptcy court’s help in creating a viable payment plan by making a Chapter 13 bankruptcy filing.
See also:
ABAJournal.com: “Veteran lawyer fined $1K for using b-word to describe trial court in contempt-case appeal”
