Advisory Opinion:
1973
Year Issued:
2002
RPC(s):
RPC 1.4, RPC 1.2(a)
Subject:
Communication with client about a creditor`s reaffirmation agreement
The inquiring lawyer asks whether a lawyer has an ethical duty to convey a creditor’s offer of reaffirmation of a bankruptcy client’s debt. The committee opined that RPC 1.4 dealing with communication does not contain a requirement to transmit all correspondence to a client or discuss it with the client. Rather, RPC 1.4 provides that a lawyer has an ethical duty to keep a client reasonably informed about the status of a matter and promptly comply with reasonable requests for information and shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.
The substantive law and the facts of individual cases will dictate whether particular items of correspondence should be transmitted to, or discussed with, a client in order to comply with a lawyer’s duty under RPC 1.4(a) to “. . . keep a client reasonably informed.” Authorities beyond the text of RPC 1.4 also suggest that a lawyer’s duty to keep a client reasonably informed includes an obligation to inform the client of the substance of any offer of settlement (RPC 1.2(a)), unless prior discussions with the client have made clear that the proposal is unacceptable. Whether the reaffirmation offer involved in the inquiry constitutes such a settlement offer or is otherwise material to your representation of your client appear to be matters of substantive bankruptcy law beyond the purview of the committee. If the letter from the creditor also has been sent to the client, RPC 1.4(b) would also be implicated thereby requiring the lawyer to explain the matter to the extent reasonably necessary to allow the client to make an informed decision.
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