At the State Bar’s request, the Supreme Court today issued a standing order that governs the intersection of California attorney disciplinary proceedings and federal bankruptcy law. The order states:
Upon notice of the filing of a petition for bankruptcy under title 11 United States Code section 301, 302, or 303 on behalf of an attorney who is subject to a mandatory payment condition contained within a disciplinary order of this court, the State Bar of California is authorized to consider the disciplinary order amended to remove any mandatory payment condition if the underlying debt is dischargeable under the federal Bankruptcy Act (11 U.S.C. § 101 et seq.) and case authority controlling upon the State Bar. The State Bar is further authorized to treat such a mandatory payment condition as reinstated in the disciplinary order if the State Bar subsequently receives notice of a decision by a federal bankruptcy court exercising jurisdiction over the matter that the discharge of the underlying debt was denied or the debt was deemed non-dischargeable. The State Bar of California is further authorized to treat any mandatory payment condition contained within a disciplinary order of this court as satisfied upon notice that the underlying debt has been discharged by a federal bankruptcy court exercising jurisdiction over the matter.
This order would presumably apply to any mandatory payment conditions that result from the disciplinary proceedings against Tom Girardi. (See here and here.)
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