Members of the Bar –

When my office discovers a case in which the Debtor(s) has retained outside counsel to pursue an outside legal action, we shall be filing a Motion to Compel with the Court, requesting Debtor to obtain Court approval for their retention.  This will occur as soon as the Trustee becomes aware of the existence of such a suit, including prior to the 341 Meeting being conducted.  If the name of the attorney representing the Debtor(s) is not included in the disclosure of the suit, the Motion to Compel will request this information, so please be advised that it is better to disclose this information if it is known.

The purpose of these Motions is to ensure that not only does civil counsel have authority to pursue the action on behalf of the estate, but more importantly, they must obtain Court approval prior to the settlement/disbursement of any such proceeds. 

This procedure is effective immediately.

Your understanding and cooperation is appreciated.

RS