  |
  |
  |
    
  
   |
 | |||
|
|
|
|
| |||
counsel to satisfy personally excess costs, expenses and attorneys' fees incurred as a result of unreasonable and vexatious multiplication of proceedings. Concealment of assets, false oaths and claims, including knowing and fraudulent efforts to obtain advantage for acting or forbearing to act in a bankruptcy case, are bankruptcy crimes. Knowing and fraudulent appropriation of property of a bankruptcy estate, or destruction of any document belonging to a bankruptcy estate which came into his charge as trustee, custodian, or other officer of the court, is criminal as well. Knowing and fraudulent agreements to fix fees or compensation in a bankruptcy case is also illegal. Further, the bankruptcy court may have the inherent power to sanction attorneys appearing before it for bad faith conduct. Sanctions can include suspending or disbarring an attorney from practicing in the bankruptcy court for that district.
7. When a sanctioned lawyer's conduct is illegal or violates the ethical rules governing his practice of law in a manner that raises a substantial question as to the lawyer's honesty, trustworthiness or fitness as a lawyer in other respects, that lawyer and other lawyers knowing of it are obligated to report that conduct to the applicable state bar disciplinary authorities. Judges are likewise required to report conduct meeting this standard.
1. A DIP has not only the powers, but also most of the duties of a trustee,
This outline is adapted from Chapter 27, Ethical Responsibilities, Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)
