While people have the right to be represented by an attorney in criminal cases, they rarely enjoy similar rights in civil cases. For example, in bankruptcy, debtors can seek the appointment of counsel, but their requests will only be granted in exceptional circumstances, as discussed in a recent California ruling. If you are overwhelmed with debt, you should meet with a California bankruptcy attorney to evaluate whether bankruptcy may be an option for you.
History of the Case
It is reported that the debtor filed for Chapter 13 bankruptcy. The court then granted a creditor relief from the automatic stay, which had been initiated when the debtor filed for bankruptcy. The debtor claimed that the creditor had wrongfully acquired the property at issue through fraud. The bankruptcy court also dismissed the debtor’s Chapter 13 case after the debtor failed to amend her debt adjustment plan as directed by the court. The court had ordered the debtor to omit a particular creditor from the plan, but the debtor failed to do so by the June 28, 2024, deadline, resulting in a dismissal of the case due to prejudicial delay. The debtor appealed both orders and moved for appointment of counsel in both matters.
Appointment of Counsel in Bankruptcy Cases
On appeal, the court reviewed both of the debtor’s motions for the appointment of counsel. It applied the standard for appointing counsel in civil cases, which requires a showing of “exceptional circumstances” under 28 U.S.C. § 1915(e)(1). This involves evaluating the likelihood of success on the merits and the debtor’s ability to articulate claims in light of the legal issues’ complexity. Continue reading