Lawyer refunds $8,200 in fees to bankruptcy client $6,371 in debt
Posted Sep 13, 2013 12:59 PM CST
By Stephanie Francis Ward
Corrected: A Pennsylvania lawyer has agreed to repay a bankruptcy client’s $8,200 in fees after the filing’s trustee discovered that the party’s debts amounted to $6,371.
According to the Erie Times, the bankruptcy trustee said that Marla Snavley could have used the money to pay off her debts rather than paying lawyer Jason J. Mazzei.
A hearing to approve the settlement is scheduled for Oct. 3. Snavley had sought Chapter 7 protection.
"Mazzei's advice to file a bankruptcy for this debtor was ill-advised and solely motivated by Mazzei's desire to charge and receive a significant fee," bankruptcy trustee John Melaragno wrote in court filings.
Updated Sept. 16 to correctly state that the lawyer is from Pennsylvania.