Source: Erie Times-News, Pa.文件倉Oct. 04--If he did not have the law to consider, U.S. Bankruptcy Judge Thomas P. Agresti said, his decision would be swift.He said he would reverse the unusual Chapter 7 bankruptcy case of Warren resident Marla Snavley, whose lawyer's fees were larger than her debts."It is an easy one if I was only governed by my heart," Agresti said at a hearing at the federal courthouse in Erie on Thursday. "But I have to be careful with precedent."Snavley suffered "terrible treatment" in her bankruptcy, Agresti said. He said he must find how far the law will let him go to fix her situation."I'll roll up my sleeves and look at it," he said.Agresti reserved a ruling on whether to reverse Snavley's filing by revoking the discharge of her debts in Bankruptcy Court on June 14. The revocation would recognize that Snavley's lawyer, Jason J. Mazzei, should have never advised her to file for bankruptcy, and the reversal would remove the stigma of bankruptcy from Snavley, the trustee overseeing the case, Erie lawyer John Melaragno, told Agresti.Agresti said he had "no problem whatsoever" with approving a settlement in which Mazzei would refund $8,200 in fees to Snavley. Melaragno proposed the settlement and the reversal of the filing.But Agresti said he had to study the law to determine whether he could also take the rare step of revoking the discharge of Snavley's debts.Agresti s存倉id such revocations typically are allowed to penalize a debtor for bad behavior. By revoking a discharge, a judge removes the debtor from bankruptcy protection and allows creditors to seek payment of debts.In the Snavley case, she did nothing wrong but decided to file for Chapter 7 only because Mazzei wrongly told her to do so out of "a desire for a large fee," Melaragno wrote in court records.As trustee, Melaragno objected to Mazzei charging Snavley $8,200 to file a bankruptcy to discharge debts of $6,371. Mazzei as part of the proposed settlement also agreed to refund the fee and to pay an additional $14,582 to cover the debts and other costs.Melaragno on Thursday acknowledged to Agresti that the law "is against" a revocation of a discharge in the case, but it would be a just result.Mazzei wasn't in court but hasn't objected to the settlement or revocation of Snavley's discharge. Based in Pittsburgh, he has offices throughout the state, including in Erie and Warren.Agresti has called Mazzei's handling of the Snavley case "unconscionable" and it's one reason he is monitoring Mazzei's representation in other bankruptcy cases.ED PALATTELLA can be reached at 870-1813 or by e-mail. Follow him on Twitter at twitter.com/ETNpalattella.Copyright: ___ (c)2013 the Erie Times-News (Erie, Pa.) Visit the Erie Times-News (Erie, Pa.) at .GoErie.com Distributed by MCT Information Services儲存
- Oct 05 Sat 2013 12:45
Erie judge reserves ruling in bankruptcy reversal
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