A former bankruptcy client sued his bankruptcy law firm (Clark & Washington, P.C.) and its managing partner (Emory Lee Clark). The firm, allegedly one of the larges filers of consumer bankruptcy cases in the the United States Bankruptcy Court for the Northern District of Georgia, advertises legal representation in cases filed under 11 U.S.C. 701, et seq. ("Chapter 7") for a down payment of $299, with an installment plan covering the remainder. The installment plain includes the practice of having clients tender personal checks post-dated to be cashed during various intervals following the planned filing of their bankruptcy cases - and sometimes after the bankruptcy cases have been discharged. In addition, the defendants sometimes cash these post-dated checks while the clients' cases are pending, without seeking relief from the automatic stay. According to the suit, the defendants fail to disclose to their clients that the installment plan obligations are dischargeable in the bankruptcy.
The plaintiff defines the class as "all persons who hired Defendant [sic] for the purpose of legal representation during actions under Chapter 7 and paid the requisite fee in post-dated personal checks." The suit seeks monetary damages under federal and state RICO statutes, federal bankruptcy statutes, and theories of fraud, mail fraud, bankruptcy fraud, fraud by concealment, and unjust enrichment. Terry Haygood and Thomas D. Womack represent the plaintiff. For more information see Richard Edwin Lundquist, III v. Clark & Wahsington, P.C., et al., 1:11-mi-99999-UNA (U.S. Dist. Ct. N.D. GA).