Opinion ID: 2637589
Heading Depth: 1
Heading Rank: 4

Heading: Representation of Michelle Altherr

Text: ¶ 12 Michelle Altherr and her husband were referred to Respondent by Ray Armbruster of WPA, after receiving a solicitation letter related to the potential foreclosure of their home. In June 1999, the Altherrs paid Respondent a $775 retainer to file bankruptcy on their behalf. Respondent assured them it would be an easy case. He requested information and documents from the Altherrs, which Ms. Altherr delivered to WPA three days later. On July 30, 1999, Respondent filed a Chapter 7 bankruptcy action on behalf of the Altherrs in the U.S. Bankruptcy Court for the District of Arizona. However, he did not file the schedules and statements contemporaneously. Within days, the Altherrs received a notice from the U.S. Trustee that requested the same documents Ms. Altherr previously had delivered to Respondent. When she telephoned Respondent to inquire about the notice, he stated he had taken care of everything. ¶ 13 On August 26, 1999, the court dismissed the Altherr's bankruptcy petition for failure to file schedules and a statement of affairs. They learned of the dismissal when they telephoned the court to inquire about it. When Ms. Altherr called Respondent to discuss the dismissal, he told her he would talk to White. She assumed Respondent would handle the matter and call her back. ¶ 14 In September 1999, the Altherrs went to WPA's office and signed the necessary paperwork to file a second bankruptcy. Subsequently, White and Respondent stated they had filed a second bankruptcy and the Altherrs would receive notice of a Section 341 hearing soon. The Altherrs became concerned when a stranger tacked a motion and summons concerning an action for foreclosure to their front door, then photographed it. When the Altherrs telephoned Respondent, he again told them not to worry, that he had filed the second bankruptcy. ¶ 15 On December 16, 1999, Respondent filed a Motion to Reinstate the first bankruptcy, along with the requisite schedules and statements. Respondent's Disclosure of Compensation of Attorney for Debtor falsely reflects the Altherrs had not paid his attorney's fees at the time of filing. Ms. Altherr spoke with Respondent the following day, and he admitted the second bankruptcy had not been filed in September, blaming the oversight on White. Respondent stated he had terminated his arrangement with White because of similar problems. Respondent also stated he had filed the necessary papers to reinstate the first bankruptcy and that the Altherrs need not appear at the court date noticed in the foreclosure pleadings. Respondent again assured them he would take care of it. The Altherrs then paid Respondent an additional $130 to have the bankruptcy reinstated. ¶ 16 In an order filed April 26, 2000, the Respondent was ordered to expeditiously transfer his open bankruptcy files to another attorney ... or withdraw from representation of debtors in those cases. The order also instructed the Respondent to notify his clients of the order and to send them a copy thereof. The order also stated the court found cause to issue a temporary restraining order against the Respondent prohibiting him from accepting new bankruptcy cases. But, based on Respondent's avowal to the court on April 18 that he was no longer taking or accepting new bankruptcy clients, the court chose not to issue the restraining order. ¶ 17 On January 4, 2000, the court denied Respondent's Motion for Reinstatement because he did not provide a reason why the missing documents were not filed promptly, along with a request for reinstatement, after the case was dismissed on August 26, 1999. Ten days later, the court entered an Order to Pay Reopening Fee and vacated the order denying the Respondent's Motion to Reinstate. Respondent told the Altherrs they need not appear at the Section 341 hearing scheduled for January 31, 2000, because it would be rescheduled. However, it was not rescheduled and the Altherrs and Respondent failed to appear. ¶ 18 Respondent neglected to inform his clients or the court that he would not appear. On February 22, 2000, the court entered an order dismissing the Altherr bankruptcy case because no one had appeared at the Section 341 hearing. Again, Respondent failed to inform his clients that their case had been dismissed. The Altherrs learned of this development when they received an Order from the bankruptcy court advising them of the dismissal due to their failure to appear at the Section 341 hearing. When they telephoned Respondent, he promised he had spoken with the Trustee and that it had been taken care of. The Altherrs believed the problem was resolved and expected notice of a second Section 341 hearing. ¶ 19 On March 2, 2000, Respondent filed a Motion to Reinstate the Altherr bankruptcy. On March 10, he told the Altherrs a hearing to reinstate their bankruptcy was scheduled for April 7, 2000. He again informed them that they need not attend, and on April 5, 2000, the court denied the Motion to Reinstate and directed that if the bankruptcy was refiled, it would be assigned to the same judge. Respondent informed the Altherrs their bankruptcy petition could not be reinstated and must be re-filed. He failed to tell them it had been dismissed April 27, 2000. Over the next few months, Respondent offered his clients various explanations as to why he had not prepared the necessary forms for re-filing. ¶ 20 On July 11, 2000, the Respondent informed the Altherrs the forms were prepared and ready for their review and signature. They picked them up and returned the signed copies to Respondent within a few days, with the understanding their bankruptcy would immediately be re-filed. As of August 1, 2000, Respondent still had not filed the Altherrs' bankruptcy or returned any of their multiple phone calls. On that day, the Altherrs retrieved their file from WPA Associates. They never spoke with him again. ¶ 21 Respondent's misconduct prejudiced the Altherrs. Their residential mortgage was foreclosed, forcing the couple and their child to vacate their home and move into an apartment.