Bankruptcy

Is the Attorney Gag Provision of the 2005 Amendments to the Bankruptcy Code Unconstitutional?

By Joseph McDaniel, Esq.

Here's the article, in a very good blog called Credit Slips.

One of the things a bankruptcy lawyer is not permitted to advise a client to do is to incur new debt for any reason whatsoever.

Because I'm a law abiding kinda guy, I will therefore not advise a client to incur new debt.

Unless or until the Supreme Court decides that the provisions in question are unconstitutional, at which point I will so advise only if it makes any sense (after all, you wouldn't normally advise a client to go out and incur new debt just for fun, right before a filing; usually, it would not be sound advice).

The article I link to above does discuss some situations where a bankruptcy lawyer might believe it was in a client's best interest to incur new debt prior to filing, and those are interesting theoretical situations.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on August 20, 2009 (boomark / email).