Sami Itshaik
ORDER APPOINTING TAREK K. KIEM, ESQ. AS GUARDIAN AD LITEM FOR DEBTOR SAMI ITSHAIK
This matter came before the Court for hearing on July 8, 2026 on the Court’s Order (I) Directing the Appointment of a Guardian Ad Litem for the Debtor, (II) Requiring Submission of Candidates, and (III) Setting Hearing.1 For the reasons discussed below, the Court will overrule the objection of Shaun Itshaik,2 and will appoint Tarek K. Kiem, Esq. as guardian ad litem for debtor Sami Itshaik, pursuant to
I. Background.
A. The Debtor’s Bankruptcy Filings.
Debtor Sami Itshaik commenced this bankruptcy case by filing a pro se petition under chapter 7 of the Bankruptcy Code on December 2, 2025.3 This was his second bankruptcy filing in this district. Approximately thirteen months before this case, on November 21, 2024, Mr. Itshaik had filed a pro se petition under chapter 13 of the Bankruptcy Code.4 That case was dismissed less than three weeks later, after he failed to timely file his schedules of assets and liabilities and other related forms.5
In this case as well, Mr. Itshaik again did not initially file his schedules of assets and liabilities and other related forms.6 The clerk of court then gave him notice that if these dеlinquencies were not cured by December 16, 2025, his case may be dismissed.7 On December 15, 2025, he moved for a 30-day extension of this deadline.8 In his motion, he represented that he is appearing pro se in the matter and is receiving assistance from his son, Sharon (also referred to as Shaun). The motion goes on to state that:
4. The Debtor suffers from cognitive decline as a result of a stroke he suffered. This medical condition has significantly impaired the Debtor’s memory, particularly regarding historical financial information and past transactions.
5. Due to the Debtor’s cognitive impairment and memory difficulties, he requires substantial assistance to recall and compile the
detailed financial information necessary to accurately complete the bankruptcy schedules and statements. 6. The Debtor’s son, Sharon, is assisting the Debtor in collecting all necessary documentation, reviewing historical records, and gathering the information required to properly and accurately complete the schedules. This process is time-consuming given the Debtor’s medical condition and limitations.
7. The Debtor is committed to filing complete and accurate schedules and statements, but requires additional time to ensure that all information is properly gathered and verified given his medical limitations.9
The Court granted in part and denied in part the motion, extending his deadline only to December 31, 2025.10 On December 31, Mr. Itshaik timely filed bankruptcy schedules,11 but he failed to file his statement of financial affairs, statement of current monthly income, and payment advices.12 Because he failed to cure all deficiencies by the court-ordered December 31 deadline, on January 15, 2026, the Court then dismissed this case.13
The schedules he filed disclosed two single-family homes in Brooklyn, New York – 1052 E. 57th Street and 1138 E. 57th Street. For both properties, which the debtor listed on his Schedule A/B, he stated, “on my name but not mine.”14 Othеr than these two properties, $600 in cash, and 100% interests in “rjg cab corp,” “hot express cab corp,” and “best express cab corp,” he listed no other assets. He did not claim any property as exempt. He also listed no creditors at all – no secured claims, no priority
On January 22, 2026, chapter 7 trustee Marc P. Barmat timely moved15 for relief from the dismissal order under
In his motion, the trustee represented as follows:
4. The Trustee reached out to the pro se debtor and his adult son and was advised the debtor will cure the above deficiencies by the filing of the required documents. It is anticipated that by the time this matter is scheduled for hearing before the Court, the deficiencies will be cured.
5. Reinstatement of this case is appropriate under
11 U.S.C. § 105(a) andFederal Rule of Bankruptcy Procedure 9023 , as the dismissal resulted from procedural deficiencies that have been or will be cured and reinstatement will permit proper administration of the estate.6. The Trustee has identified matters requiring investigation and administration that warrant reinstatement for the benefit of creditors.
7. No party will be prejudiced by reinstatement. Reinstatement will allow the Trustee to perform statutory duties under
11 U.S.C. § 704 .17
The trustee served his motion and the notice of hearing on his motion on the debtor at the mailing address listed on his bankruptcy petition.18 Neither the debtor, nor his son, nor any other person on his behalf appeаred at the hearing on the trustee’s motion. Counsel for secured creditor Valley National Bank, however, did
B. The Creditors and Their Claims.
Valley National Bank’s claim arises from the debtor’s guaranties of loans to his taxicab companies. Valley National Bank asserts a $7,183,126.17 claim against the debtor, which it contends is secured by the two Brooklyn properties pursuant to four 2022 New York state court judgments.20 According to Valley National Bank’s proof of claim, the two Brooklyn properties are collectively worth $1.8 million.21 Thus, Valley National Bank’s claim consists of a $1.8 million secured claim, and a $5,383,126.17 unsecured claim.22
Valley National Bank also holds a May 7, 2025 New York state court judgment against Sami Itshaik; 1052 East 57th Street Trust, Sami Itshaik, Trustee; and 1138 East 57th Street Trust, Sami Itshaik, Trustee; avoiding and setting aside transfers of the two Brooklyn propertiеs pursuant to certain “Correction Deeds,” and declaring that Valley National Bank’s four underlying judgments are liens against these two Brooklyn properties.23
In addition to Valley National Bank’s claim, four other creditors filed proofs of claim in this case – JPMorgan Chase Bank, N.A., with a $2,718.54 unsecured claim;24 DePalma Acquisition I LLC, with a $4,491,228.98 unsecured claim;25 American
C. Sharon “Shaun” Itshaik’s Motion to Dismiss.
About one month after the Court reinstated this case – and roughly four months after the petition date – the debtor’s son, Shaun Itshaik, as next friend, moved to dismiss the case, asserting that his father was medically incompetent and incapable оf participating in the case,30 based on allegations that debtor Sami Itshaik has “permanent, structural neurological damage to the bilateral hippocampus – the region of the brain principally responsible for memory.”31 Both the trustee and Valley National Bank opposed the motion.32 The trustee argued that under
1. In addition to joining with the Trustee’s Response, Creditor would also state that Debtor has engaged in a long history of efforts to thwart the legitimate efforts of Creditor including fraudulent conveyances and other dilatory tactics. In fact, the very filing of this case was an attempt to stop Creditor from realizing on its substantial claims which the Debtor now sees as a tactical error which he seeks to undo by this competency tactic.
2. Creditor believes the only way that creditors will ever see any recovery is by the continued jurisdiction of the Bankruptcy Court preventing the delay of further fraudulent conveyances and obstreperous litigation.
3. An experienced trustee such as Mr. Barmat can efficiently and effectively bring recovery to the creditors and his continued involvement is in the best interest of the creditors and the estate.36
In advance of the hearing on his motion to dismiss the case, Shaun Itshaik filed a reply brief in which he argued – for the first time – that this chapter 7 bankruрtcy case was void at the outset because the debtor lacked cognitive capacity at the time of filing.37 At the hearing on the motion to dismiss, however, Shaun Itshaik made a critical admission – that he actually assisted his father in filing the case that he is now seeking to dismiss. This admission negated for the Court any notion that the filing was unauthorized, and so for the reasons stated on the record at the March 25, 2026 hearing, the Court denied the motion to dismiss.38 Shaun Itshaik has appealed that order.39
D. Shaun Itshaik’s Motion to Remove the Trustee.
Shaun Itshaik, again proceeding as next friend for debtor Sami Itshaik, then sought to remove the trustee.40 After a hearing on June 10, 2026,41 the Court denied that motion on three independent grounds.42 First, while a next friend may constitute the real party in interest for purposes of seeking relief on behalf of another, a next friend who is not himself an attorney may not appear pro se and instead must retain counsel to prosecute the requested relief. Because Shaun Itshaik was not appearing through counsel, his motion was procedurally deficient on that basis alone. Second, even if the debtor or his next friend had been represented by counsel, an individual debtor in an insolvent chapter 7 case lacks standing to seek the trustee’s removal. In this case, the only material assets are the two Brooklyn properties, worth (according to Valley National Bank) approximately $1.8 million. A total of $11,734,812.71 in claims have been filed in the case, consisting of $1,857,504.63 in secured claims and $9,877,308.08 in unsecured claims. In addition, the estate continues to incur administrative expenses, which have steadily increased as a result of extensive litigation. Thus, there is no reasonable possibility in this case of the trustee recovering sufficient assets to pay all claims in full.43 In a chapter 7 case, it is only
E. The Trustee’s Motion to Extend Time to Object to the Debtor’s Discharge and Appointment of a Guardian Ad Litem.
Also set for hearing on June 10, 2026 was the trustee’s motion to extend his deadline to object to the debtor receiving a discharge.46 As the Court explained at the hearing, an individual chapter 7 case essentially proceeds on two tracks.47 Track one is the individual’s pursuit of a discharge of his debts, which is usually the goal of an individual filing a chapter 7 bankruptcy petition. Track two is the trustee’s collection and liquidation of assets to pay creditors. To date, all the concerns raised by Shaun Itshaik pertained to track two – the trustee’s collection and liquidation of assets to pay creditors – as to which, the Court explained, the debtor or anyone purporting to act on his behalf lacked standing to take issue.
But now that the trustee sought an extension of time to object to the debtor’s discharge, track one – as to which the debtor does have standing – was implicated. Because it was the first request for an extension that is routinely granted in nearly
II. The Selection Process.
(a) Represented Infant or Incompetent Person. If an infant or an incompetent person has a representative-such as a general guardian, committee, conservator, or similar fiduciary-the representative may file a voluntary petition on behalf of the infant or incompetent person.
(b) Unrepresented Infant or Incompetent Person. If an infant or an incompetent person does not have a representative:
(1) a next friend or guardian ad litem may file the petition; and
(2) the cоurt must appoint a guardian ad litem or issue any other order needed to protect the interests of the infant debtor or incompetent debtor.50
Thus, the rule specifically contemplates that an individual need not be competent to file a bankruptcy petition. In fact, case law supports the notion that an individual
So, in order to providе the opportunity for an incompetent person to file for bankruptcy,
Thus,
The United States trustee elected not to participate in the process.57 And, despite the Court’s request for three candidates, after reaching out to eight individuals, the trustee and Valley National Bank were only able to find two candidates willing to serve: Tarek K. Kiem, Esq., of Kiem Law, PLLC, and John K. Olson, Esq., of Venable LLP.58 Each candidate submitted a declaration addressing his qualifications. In addition, although not required by
III. Shaun Itshaik’s Objections.
Shaun Itshaik – once again purporting to act as next friend for debtor Sami Itshaik – objected to both candidates.59 He argues that neither Mr. Kiem nor Mr. Olson should be appointed based on certain past professional relationships disclosed in their respective declarations. Instead, Shaun Itshaik requests that he be appointed guardian ad litem, but that Valley National Bank be required to fund the legal fees for any attorney he hires. His objection will be overruled.
The Court will first address why Shaun Itshaik will not be appointed as guardian ad litem. The Court has already held, in denying his motion to remove the chapter 7 trustee,60 that a next friend who is not himself an attorney may not appear pro se to prosecute relief on behalf of another; he must be represented by counsel.61 Nothing in the objection reflects that Shaun Itshaik is aрpearing through counsel.
Turning now to the disclosures made by the candidates – which again, are not required under
None of the disclosed connections disqualify Mr. Kiem from serving as guardian ad litem. That a proposed guardian ad litem was once a client of the individual serving as chapter 7 trustee in this case in a concluded matter having nothing to do with the debtor here, creates no interest adverse to the debtor. Disinterestedness under section 101(14) is measured by the candidate’s relatiоnship to the debtor and the estate, not by whether the candidate’s law firm has ever had any professional dealing with the individual serving as trustee in this case in unrelated matters. Likewise, Mr. Kiem’s involvement as a professional in other cases
As for Mr. Olson, he discloses that (a) he previously served a 14-year term as a United States Bankruptcy Judge and that the trustee, his counsel, and counsel for Valley National Bank appeared before him on matters unrelated to this case; (b) he served as a mediator in two separate cases in which the trustee or his counsel represented a party to the mediation; and (c) his firm represents Mr. Barmat in his capacity as chapter 7 trustee in the case of In re Jennifer Bradley Corporation, Case No. 23-11971-SMG.66
While none of Mr. Olson’s disclosed connections disqualify him either, the fact that his firm is still representing Mr. Barmat in another open (yet completely unrelated) matter, and the fact that his hourly rate is twice that of Mr. Kiem’s, leads the Court to conclude – after carefully considering the qualifications of both candidates – that Mr. Kiem is the bеtter choice for guardian ad litem in this case.
Accordingly, it is
- Shaun Itshaik’s objection to the appointment of either guardian ad litem candidate is OVERRULED, and his cross-motion to have himself appointed as guardian ad litem is DENIED.
- Tarek K. Kiem, Esq. is APPOINTED as guardian ad litem for debtor Sami Itshaik, pursuant to
Federal Rule of Bankruptcy Procedure 1004.1(b)(2) , to protect the interests of the debtor in this case. - Mr. Kiem must keep contemporaneous time records of his fees and expenses, payment of which will be borne by Valley National Bank, after application and notice under
11 U.S.C. §§ 330 and331 , andFederal Rule of Bankruptcy Procedure 2016 .
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Copies furnished to all parties of interest by Clerk of Court.