Re: Settlement offer illegal or unethical?

Not seeing the matter entirely, I am unable to discern whether the basis for the settlement is equitable in nature or motivated solely upon putative sanctions. If the attorney is paying for a debt on behalf of his client from his funds then, based on this bald assertion, the attorney has, at a minimum, erred in the filing. You make no mention as to the type of filing (and I assume Chapter 7). You should have brought this matter at the creditor hearing.

Basically, it seems that a defalcation has occurred. Bankrupcy judges, as with any judge, can err on expediency rather than conservancy. With the limited factual matter provided, I cannot state whether it would be best to take the $2,000 or raise the issue further. Exparte communication is not the preferred course of action. You should contact an attorney with fees that are scaled to your matter.

Joe Holthaus

(410) 799-9002