August 18, 2006
Worst Statute in the World for August 18, 2006
This week's winner is the Bankruptcy Abuse Prevention and Consumer Protection Act, affectionately known as "BAPCPA". The statute has been held unconstitional in part, as noted by Kevin Chern over at the bankruptcy lawyer's blog. Seems Congress decided to enact legislation that, among other things, prohibited bankruptcy attorneys from advising a person "to incur more debt in contemplation of such person filing a case under this title..." 11 U.S.C. 526(a)(4). The problem, as I understand it, is that sometimes it's in the client's best interest to do this, and it's not illegal for the client to take on more debt. In late July 2006, in Hersch v. U.S., Northern District of Texas held the statute unconstitional as violating the First Amendment.
BAPCPA section 526(a)(4) -- under which clients can't be told to do something that's legal and in their interest -- today's Worst Statute in the World!
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