Hector Manuel Sagastumes

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1
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
HECTOR M. SAGASTUMES, No. 08-10188
Debtor(s).
______________________________________/
TENTATIVE DECISION and ORDER THEREON
_________________
Attorney Steven A. Alpert practices in Southern California. For reasons not apparent to the court, he
filed a Chapter 7 petition in this court for debtor Hector Sagastumes for a fee of $4,500.00. Even though this
is a very large fee in this area for filing a Chapter 7 case, Alpert does not appear to have acted competently.
The Chapter 7 trustee was horrified to discover, well into the case, that the debtor was continuing to operate
a business. Any competent Chapter 7 attorney would have immediately notified the trustee of such an
important fact.
Moreover, Alpert has not properly represented his client. The trustee was forced to bring an
adversary proceeding against the debtor and two emergency hearings were held. At the first hearing, the
debtor was represented by a surrogate attorney with no knowledge of the case. At the second hearing, the
debtor had no representation at all. Observing these things, the court requested that the trustee bring Alpert’s
fees before the court for review pursuant to § 329 of the Bankruptcy Code.
The court issued an order to show cause on March 31, 2008, commanding Alpert to appear on April
25, 2008. The order provided that Alpert could apply for a change of date if that date was inconvenient.
Entered on Docket
April 21, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 08-10188 Doc# 37 Filed: 04/21/08 Entered: 04/21/08 11:07:11 Page 1 of 2

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1The duties of a competent Chapter 7 debtor’s counsel are far more than filling out the forms and
attending the meeting of creditors. In return for diminishing the estate by taking a fee, counsel is expected to
immediately notify the Chapter 7 trustee of anything the trustee should know in order to maximize the
bankruptcy estate. Examples are perishable assets, security concerns, and an operating business. Any
attorney who takes a $4,500.00 fee should know this.
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Instead, Alpert has filed a request that he be allowed to appear by telephone or that the court rule without his
presence, citing as a reason that he and his wife are expecting a child soon.
An attorney should not take a case in a court he is not prepared to appear before. While the court is
perfectly willing to delay Alpert’s appearance to accommodate his personal situation, Alpert must be
prepared to eventually appear before the court in person to explain his conduct. Telephonic appearance is
intended to make legal representation more affordable to clients; it is a courtesy not extended to those who
are ordered to appear and explain apparent misconduct.
All the court knows right now is that Alpert has taken a fee much larger than the usual Chapter 7 fee
for a debtor’s attorney and that through his inaction he appears to have created a very difficult situation for the
Chapter 7 trustee.1 He has a right to explain his conduct to the court, and it is proper for the court to demand
he do so in person.
IT IS THEREFORE ORDERED that within the next 45 days Alpert either appear in person on a law
and motion calendar or turn over the sum of $2,000.00 to the trustee to compensate the estate for
unnecessary expenses incurred because the trustee was not immediately notified of an operating business and
$1,000.00 to the debtor as a sanction for allowing the debtor to be unrepresented at a hearing in this court. If
Alpert chooses the former, he shall immediately inform the court, the trustee and his counsel, and the U.S.
Trustee of the date of his appearance.
Dated: April 21, 2008
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Case: 08-10188 Doc# 37 Filed: 04/21/08 Entered: 04/21/08 11:07:11 Page 2 of 2