Lawyer Loses Bid to Beat Bankruptcy Sanctions Over Due Process

An attorney who was hit with $5,000 in sanctions for his conduct in a bankruptcy proceeding failed to convince the Fourth Circuit that he didn’t receive adequate due process.

Darren Delafield represented Timothy and Andrian Williams, who were clients of UpRight, a Chicago-based bankruptcy legal services company. The Williamses participated in UpRight’s New Car Custody Program, which purportedly funneled bankruptcy clients to repossession company Sperro LLC, which would in turn take custody of debtors’ vehicles and use them for its enrichment, court records allege.

The bankruptcy court sanctioned Delafield for his relationship to UpRight’s NCCP and its client onboarding practices, ...