In Re: Kathleen Bonebreak
Opinion
Trial Court Opinion
I.
FACTUAL AND PROCEDURAL BACKGROUND
This matter is before the Court on the appeal by Stephen L. Burton, counsel for Debtor Kathleen Bonebreak, of an Order of the United States Bankruptcy Court for the Central District of California. [Doc. # 1.] On January 22, 2020, the Bankruptcy Court issued an Order to Show Cause (“OSC”) as to why it should not sanction Burton for his failure to file “case commencement documents,” “obtain confirmation of the debtor’s plan,” and file “a statement of compensation as required by 11 U.S.C. § 329(b).” Appellant’s Appendix at 2-3 [Doc. # 7-1]. The Bankruptcy Court ordered Burton to file a statement of compensation by February 18, 2020 and appear in person on February 25, 2020 for a hearing relating to the OSC. Id. The transcript from the February 25, 2020 OSC hearing indicates that he did not timely file any statement of compensation or appear before the Bankruptcy Court. Id. at 22-23. As a result, the Bankruptcy Court “presume[d]” that Burton had received $5,000 in compensation for his work on the case— the maximum amount allowable under the Local Rules—and issued a sanction against him for $5,000. Id. On March 4, 2020,…