Quote of the Day - People who are always making allowances for themselves soon go bankrupt.
Bankruptcy lawyers can breathe a sigh of relief after a ruling by Chief Judge Lamar W. Davis of the U.S. Bankruptcy Court for the Southern District of Georgia. He ruled that lawyers are not "debt relief agencies" within the meaning of the new bankruptcy law. For awhile there, it was a dicey proposition.
The Bankruptcy Abuse Prevention and Consumer Abuse Protection Act of 2005 defined a debt-relief agency as "any person who provides any bankruptcy assistance to an assisted person in return for the payment of money or other valuable consideration, or who is a bankruptcy petition preparer." The kicker was that debt-relief agencies are subject to civil and criminal penalties for failure to make what amount to mandatory truth-in-advertising disclosures to people contemplating bankruptcy - including such limitations as not being able to advise consumers to incur more debt or pay attorneys.
Kind of tough to practice law under those restrictions, but Judge Davis has added some clarity to a muddy, mucked-up mess. Dubbed by some as the "Consumer Abuse and Bank Protection Act of 2005," the new law has been derided as " 'slipshod,' 'absurd,' and perhaps unconstitutional," according to this Andrews Publication article. Certainly there are others who favor the law.