In Re Carlos

OPINION FINDING THAT LAW FIRM HAS ENGAGED IN UNAUTHORIZED PRACTICE OF LAW

SAMUEL L. BUFFORD, Bankruptcy Judge.

I. Introduction

This case raises the issue of whether a law firm may use a non-attorney to negotiate, on behalf of a creditor client, a reaffirmation agreement with a debtor in a chapter 7 bankruptcy case.

The court holds that, where a client hires a law firm to negotiate a contract, the negotiation of the contract constitutes the practice of law that must be performed by an appropriately licensed attorney. Thus, when a law firm uses a non-attorney to negotiate a contract on behalf of a…