Until yesterday, this site had a decidedly pro-creditor vibe. In order to keep the current momentum, I would like to offer some words of interest to any bankruptcy lawyers out there.
On Tuesday, the U.S. Supreme Court heard arguments in a case involving a provision of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA").
The case, Milavetz, Gallop & Milavetz v. United States, No. 08-1119, concerns the provision which prohibits lawyers from advising their clients “to incur more debt in contemplation of” a bankruptcy filing.
Penalties for violations of this provision can be severe. I have read articles which suggest that this provision prevents lawyers from accepting credit card payments for payment of their fees. Also, how is a bankruptcy lawyer to respond when a client informs him that he or she needs emergency medical treatment just days before the petition is filed? It may be a criminal offense to advise your client to go ahead with that treatment.
On Tuesday, the U.S. Supreme Court heard arguments in a case involving a provision of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA").
The case, Milavetz, Gallop & Milavetz v. United States, No. 08-1119, concerns the provision which prohibits lawyers from advising their clients “to incur more debt in contemplation of” a bankruptcy filing.
Penalties for violations of this provision can be severe. I have read articles which suggest that this provision prevents lawyers from accepting credit card payments for payment of their fees. Also, how is a bankruptcy lawyer to respond when a client informs him that he or she needs emergency medical treatment just days before the petition is filed? It may be a criminal offense to advise your client to go ahead with that treatment.
At issue is whether that particular provision is an unconstitutional prohibition on free speech. The plaintiff is a Minnesota law firm.
The Supreme Court is not expected to rule for several months. Check back for updates.
The Supreme Court is not expected to rule for several months. Check back for updates.
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