How Long Do Bankruptcy Lawyers Have to Keep Paper Files?

Record retention varies from state to state.

All attorneys, including bankruptcy attorneys, are required to retain their clients' files for a specified period of time after the file has closed, such as when the debtor is discharged from bankruptcy. Although the retention period varies from state to state, most states have a six-year retention policy.

Function

Attorneys are required to retain files in the off chance a related legal issue comes up later on and the information in the original file is needed to proceed. Although the specific case the attorney worked on may be closed, the attorney is not discharged from protecting the client's interest in that matter, if they should arise.

Many legal issues, however, are time sensitive. That is, a claim must be made during a certain period and if it is not made, the right to file that claim is surrendered. This is known in legal terms as a statute of limitations. Lawyer's retention periods typically follow the statute of limitations, meaning, once the time has passed where no related issues can be presented in court, the lawyer is discharged of having to retain the files.

Types

Record retention periods drastically very from state to state in terms of duration and the types of files or documents that have to be retained. For example, Alabama, Alaska, Colorado, Florida, Georgia, North Dakota and South Carolina have a blanket six-year records retention period where all files and associated papers must be kept. New York, on the other hand, specifies the kinds of records that must be maintained and extends the retention period to seven years.

When the retention period begins also varies by state. For example, in New Jersey, the retention period begins after the event or legal issue began, rather than measuring from the date the file was closed, which the majority of states follow.

Expert Insight

Many attorneys also choose to retain records to help defend themselves against future claims of malpractice.

References

• ABA:Law Firm Document Retention Policies
• ABA: Materials On Client File Retention