A dispute moving through Houston’s bankruptcy court has drawn attention to a question most filers never think to ask. Several parties take part in every case, and only one of them works for you. Knowing those roles before filing changes how you read everything that comes after.
The Case in Front of the Southern District
The unsecured creditors committee in the Chapter 11 cases of Dish DBS and Dish Wireless has asked a Houston bankruptcy judge to appoint an outside trustee, arguing that the cases carry conflicts that cannot be reconciled. The committee has also asked the court to remove the company’s restructuring counsel, claiming the firm has advanced the parent company’s interests over those of unsecured creditors.
Those are allegations, and the court has not ruled on them. The committee describes what it wants as extraordinary relief, according to Bloombergt.
Consumer cases look nothing like that one in scale, but the underlying principle is the same. At Leinart Law Firm, one of the first things we explain is who sits where and what each party is obligated to do.
The Trustee Does Not Represent You
In Chapter 7, the trustee reviews your schedules, looks for property that isn’t exempt, and answers to creditors. In Chapter 13, the trustee collects your plan payments, distributes them to creditors, and can object to the plan you propose. Neither role includes advising you.
There is also the United States Trustee, a Justice Department office that oversees how cases are administered and watches for abuse of the system. That office is not your advocate either.
What Your Own Attorney Owes You
The duties run in one direction, and they are specific:
- Loyalty to you, not to a creditor or a co-debtor
- Disclosure of fees and of any connection to parties in your case
- A recommendation shaped by your circumstances
- Schedules prepared accurately, because errors follow the case
- Direct answers about what filing will and will not fix
Where Conflicts Surface in Consumer Cases
Married couples sometimes carry separate debts. A business owner may owe the same lender that his company owes. A parent may have cosigned a loan for an adult child. None of these situations automatically creates a conflict, though each one needs to be identified at the outset rather than discovered at the trustee meeting.
A Houston bankruptcy lawyer should be raising those questions before you sign a retainer, not after your case number is issued. The answers sometimes change which chapter makes sense, and occasionally they mean two people need separate counsel. Sorting that out later is far more expensive.
If you are weighing a filing, find out who represents whom before you commit to anything. Our Houston, TX bankruptcy lawyer walks through each role, reviews your debts and property, and tells you plainly what a case would accomplish. Reach out to Leinart Law Firm to start that conversation.