Waiver of Attorney-client Privilege in Corporate Chapter 7 Cases

When a corporation is a chapter 7 debtor a trustee is appointed by the court to act on behalf of the bankruptcy estate. The chapter 7 trustee has the power to waive the attorney-client privilege with regards to communications that occurred with the prior management of the debtor and the attorney for the corporation. An officer of a corporation that might land in chapter 7 may want to be mindful of the power to waive as he or she interacts with the attorney for the corporation. The power to waive the attorney-client privilege is not applicable in a case where an individual is the debtor.