Virtual Bankruptcy Representation

The limits of virtual bankruptcy representation in the 9th circuit

Many people can't afford to hire a bankruptcy attorney. As a result, California bankruptcy courts have been overrun with pro se petitions, often fatally flawed leaving indigent filers with dismissed cases and no discharge. To lower costs and make bankruptcy representation more affordable some California bankruptcy attorneys have attempted to provide virtual representation. While many definitions of virtual legal representation exist, the general idea is that the attorney uses technology to replace office visits. In bankruptcy this model would include the use of email, phone and regular mail for attorney-client communication. For instance, http://sacramentolawgroup.com/san-jose-bankruptcy-attorney gives an overview of virtual bankruptcy representation which includes use of online forms and electronic contracts in the bankruptcy process. While this model is acceptable for pre-filing work, virtual representation has a major limitation after filing according to 9th circuit case law.

No virtual representation at the meeting of creditors

If a bankruptcy attorney agrees to represent a client in chapter 7 bankruptcy they cannot exclude representation at the meeting of creditors. In so many words, your bankruptcy attorney must facilitate attorney representation at the meeting of creditors, otherwise known as the 341 meeting. The court in Hale v. Trustee ruled that your attorney's appearance at the 341 meeting is necessary service required to adequately represent you in your bankruptcy case. Therefore, a bankruptcy attorney cannot exclude that service from the scope of their representation, and therefore cannot engage in 100% virtual representation in bankruptcy. In essence, a bankruptcy attorney must make a physical appearance at the meeting of creditors.