Supreme Court To Hear Challenge To 2005 Bankruptcy Law
June 23, 2009
Changes to bankruptcy law passed in 2005 have made it more difficult and more expensive to file bankruptcy. Passed in an effort to prevent abuse of the bankruptcy system, the law restricts the advice that attorneys can give to their clients about incuring more debt before they file bankruptcy.
The U.S. Supreme Court has agreed to hear a challenge to the law that argues it violates the First Amendment.
Robert J. Milavetz, a 73-year-old Minnesota lawyer, says that the provisions of the law that forbid an attorney from advising a client to incur new debt before filing bankruptcy effectively prevents attorneys from recommending that a client buy a car so that they can get to and from work or refinance a home to pay down credit card debt.
Many constitutional experts agree that the part of the law restricting the type of advice an attorney can give a client is probably in violation of the constitution. Since it is unehtical for an attorney to advise a client to break the law, they shouldn’t be telling clients to abuse the bankruptcy system in the first place.
It will be interesting to see what action the court takes on the matter.
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