NACBA, CT Bar Association Challenge BAPCPA
The National Association of Consumer Bankruptcy Attorneys (NACBA) and the Connecticut Bar Association (CBA) filed suit in federal court today challenging provisions of the bankruptcy statute that took effect in October, 2005.
NACBA and CBA assert that the "debt relief agency" provisions of the new law prohibit attorneys from providing certain legal advice and require statements that are untrue or may be misleading to clients and potential clients.
According to CBA President Louis R. Pepe, the requirements, if applied to attorneys, prevent them from carrying out their ethical obligations to clients, since they cannot lawfully provide complete and truthful advice.
NACBA President Henry J. Sommer says that the concerns are so great that some attorneys are choosing not to represent any consumer bankruptcy clients, even on a pro bono basis, for fear of being classified as a debt relief agency under the law.
The lawsuit seeks a preliminary injunction prohibiting the provisions from being applied to attorneys pending further order of the court. No hearing date has yet been set, but we'll all be watching for further developments.
You can read the complaint and additional information at www.nacba.org.
