Can a bankruptcy lawyer withdraw when the debtor cannot pay, and must the lawyer continue after a Chapter 11 case converts to Chapter 7?

Plain-English summary

The inquiry concerned a lawyer's duties to perform legal services for a debtor in possession. The committee determined that a bankruptcy lawyer may withdraw when there is no means for the debtor to pay the lawyer's fees, and need not continue to represent a Chapter 11 debtor in possession when the matter is converted to a Chapter 7 bankruptcy, provided that the provisions of RPC 1.15(b)(4) and 1.15(d), and applicable statutory law and court rules, are complied with.

The committee added that any withdrawal should be consistent with any representation agreement or court order, citing RPC 1.2 and 1.4.

Currency note

This opinion was issued in 1997, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here. At the time of this opinion, Washington's RPC 1.15 corresponded to ABA Model Rule 1.16 (declining or terminating representation); subsections governed permissive withdrawal and the surrender of papers and property. RPC 1.2 and 1.4 correspond to Model Rules 1.2 (scope) and 1.4 (communication). Verify the current rule numbering before relying on the citations here.

Common questions

Q: Can a bankruptcy lawyer withdraw when the debtor has no way to pay the fee?

A: The committee concluded the lawyer may withdraw when there is no means for the debtor to pay, provided the applicable RPC 1.15 provisions, statutes, and court rules are followed.

Q: Must the lawyer keep going after a Chapter 11 case converts to Chapter 7?

A: No. The committee said the lawyer need not continue to represent a Chapter 11 debtor in possession when the matter is converted to Chapter 7, subject to the same compliance conditions.

Q: Does the lawyer have to follow the representation agreement or a court order when withdrawing?

A: Yes. The committee said any withdrawal should be consistent with any representation agreement or court order, citing RPC 1.2 and 1.4.

Background and rules framework

The opinion applied RPC 1.15(b)(4) and 1.15(d), which at the time corresponded to ABA Model Rule 1.16 (declining or terminating representation), together with RPC 1.2 (scope of representation) and RPC 1.4 (communication). The committee conditioned permissive withdrawal for nonpayment, and the lack of any duty to follow the case from Chapter 11 into Chapter 7, on compliance with those rules, applicable statutes and court rules, and any representation agreement or court order.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.2 (scope of representation); Washington RPC 1.2
• ABA Model Rule 1.4 (communication); Washington RPC 1.4
• ABA Model Rule 1.16 (declining or terminating representation); Washington RPC 1.15(b)(4), 1.15(d)

See also

• WA Ethics Op. 1751: Auto-Withdrawal for Unpaid Fees
• WA Ethics Op. 1782: Notice Before Destroying a File

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=976

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1783
Year Issued: 1997
RPC(s): RPC 1.2; 1.4; 1.15(b)(4); 1.15(d)
Subject: Lawyer's duty to represent debtor in bankruptcy when debtor unable to pay lawyer's fee

Your inquiry concerns the lawyer's duties to perform legal services for a debtor in possession. The Committee determined that a bankruptcy lawyer may withdraw when there is no means for the debtor to pay the lawyer's fees and need not continue to represent a Chapter 11 debtor in possession when the matter is converted to a Chapter 7 bankruptcy, provided that the provisions of RPC 1.15(b)(4) and 1.15(d), and applicable statutory law and court rules are complied with. Any withdrawal should be consistent with any representation agreement or court order. See RPC 1.2 and 1.4.