Michael Avenatti has been ordered by a bankruptcy judge to explain why he put his law firm into chapter 11 last week, WSJ Pro Bankruptcy reported. Bankruptcy Judge Catherine Bauer on Wednesday dismissed the chapter 11 case of Eagan Avenatti LLP and barred the lawyer from placing the firm back into bankruptcy for 180 days. Avenatti filed the bankruptcy on March 7, the night before his former business associate Jason Frank was scheduled to question him about the firm’s finances. Frank has been attempting to collect a $10 million judgment against Eagan Avenatti relating to his departure from the firm. Judge Bauer could sanction Avenatti if she determines he made the chapter 11 filing in bad faith, a claim he and his lawyer have denied. Judge Bauer said on Wednesday that she would tentatively schedule a hearing for May.
