Calling his decision ‘draconian,’ judge rules Christopher Pettit has to live on $140 until Monday

Near the end of a more than five-hour hearing in Christopher “Chris” Pettit’s bankruptcy case, his lawyer depicted the disgraced ex-attorney’s financial situation as dire. “Mr. Pettit can’t stand on the corner with a tin cup,” Michael Colvard, Pettit’s counsel, told Chief U.S. Bankruptcy Judge Craig Gargotta on Thursday in a downtown San Antonio courthouse. “We need to have some money.” The judge asked Pettit, 55, how much money he had. “I think probably 140 bucks,” Pettit replied. Gargotta, calling his decision “draconian,” ruled that’s what Pettit will have to live on until Monday — when Pettit, the Chapter 11 trustee overseeing assets in the bankruptcy and their lawyers are slated to return to court for a third day.

The trustee wants Pettit held in contempt for withdrawing at least $125,000 from his retirement accounts after filing for bankruptcy June 1. He sought bankruptcy protection for himself and his shuttered law firm after facing numerous lawsuits alleging he stole millions of dollars from his clients. Trustee Eric Terry asserts the retirement funds are assets of the bankruptcy estate and not available to Pettit until there’s a determination otherwise. Colvard claims the funds — the only money he says Pettit has — belong to his client and are not subject to distribution to creditors. Lawyers will present closing arguments on the civil contempt motion Monday. Even if Pettit is held in contempt, he will have the opportunity to clear himself of the finding. The hearing began Wednesday, marking the first time Pettit has appeared in public since the allegations were reported. Gargotta also will address whether Pettit can access funds for temporary living expenses until an expedited hearing on his personal budget can be held. The trustee and some creditors oppose Pettit tapping his retirement accounts any further. The accounts held more than $700,000 at the time of the bankruptcy.