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June 8, 2009

Supreme Court Grants Cert on Debt Relief Agency Issue

The Supreme Court today granted cert in the case of Milavetz, Gallop & Milavetz v. U.S.A.,  541 F.3d 785,  (8th Cir. September 2008).  There the 8th Circuit ruled  

1.  the debt relief agency (“DRA”) rules in the Bankruptcy Code apply to attorneys,  

2.  certain provisions of the DRA rules restricting speech by attorneys are unconstitutional.  The rule in question prohibits attorneys from advising their clients to incur more debt before filing a petition.     

3. the provisions of the DRA rules which require certain statements in advertising and in handouts required to be given to the prospective client are not unconstitutional.                      

The Supreme Court will consider only the first two questions next term. 

June 8, 2009 in Supreme Court | Permalink


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Blogs are good for every one where we get lots of information for any topics nice job keep it up !!!

Posted by: writing up dissertation | Jun 8, 2009 11:03:42 PM

Interesting, thanks

Posted by: Clear debt | Jun 9, 2009 5:02:22 AM

A recent Harvard Law Review piece comments on this case: http://www.harvardlawreview.org/issues/122/june09/recentcases/hersh_v_us.pdf

editors note: Thanks. JH

Posted by: clear debt | Jun 24, 2009 12:58:04 PM

Blogs are so interactive where we get lots of informative on any topics nice job keep it up !!

Posted by: Dissertation Sample | Jul 1, 2009 1:26:51 AM

Why would a legitmate attorney advise their client to incur more debt before a filing? I would hope the attorney would be disbarred for this so called advice.

Editors Note: That's the basis for the ruling in Milavetz. It only prevents lawyers from doing bad stuff - although we have to sort of guess where the line is. JH

Posted by: David "Debt Relief" Schmidt | Jul 2, 2009 11:11:16 AM

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