The Bankruptcy Lawyers Blog

Challenges to the application of certain provisions of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act began the very day the law took effect.  One of the first to bring suit to have the law declared unconstitutional was the law firm of Milavetz, Gallop & Milavetz.  Now, nearly four years later, the United States Supreme Court has agreed to decide the Constitutionality of language prohibiting attorneys from advising clients to take on debt in advance of a bankruptcy filing.

The Eighth Circuit Court of Appeals decided last year that the legislature had intended to include paid bankruptcy attorneys in the definition of "debt relief agency", and that the 526(a)(4) restrictions were overly broad as applied to bankruptcy attorneys.  The court ruled, however, that the section 528 disclosure requirements passed the rational basis test.

For more on the history of the Milavetz case:

http://blog.startfreshtoday.com/2007/04/articles/practicing-bankruptcy-law/bapcpa-provisions-declared-unconstitutional-as-applied-to-minnesota-attorneys/

http://blog.startfreshtoday.com/2006/12/articles/practicing-bankruptcy-law/section-528-advertising-disclosure-requirements-fail-constitutional-test/

http://blog.startfreshtoday.com/2006/12/articles/practicing-bankruptcy-law/rulings-against-bapcpa-debt-relief-agency-provisions-continue-to-mount/

 

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After ten years of disingenuous representations by the credit industry as it lobbied for bankruptcy reform and the recent protestations of innocence over the BusinessWeek article revealing that many major creditors are selling debts that have already been discharged in bankruptcy, the Predatory Lending Association is a breath of fresh air.  It's outrageously funny simply be being...well...accurate.  Funny, that is, in the way of things we laugh about because the only other option is to cry.

The site offers a "working poor finder" and points out that the difference of "just a few blocks" can radically impact profits.  Consumer testimonials boast, "I would have been homeless two weeks sooner without my payday loan", and debunks "myths" like "Debt traps are a bad thing."

Of course, the payday lenders of America aren't really sponsoring the site, but it's not hard to imagine these words coming from their lips behind closed doors.  Underneath the entertainment, there's serious information about a serious subject, and links to some solid write-ups and research from the Center for Responsible Lending.  Check it out yourself for fun and recommend it to your clients so they know what they're up against.

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With your help, we raised $3,000 for the Philadelphia County Consumer Bankruptcy Assistance Project.  Thanks to everyone who attended and donated to the cause. 

Photographs of the fundraising event and the trade show itself are available on Start Fresh Today at 2007 NACBA Conference Photos.

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A notice in the Federal Register on Wednesday requested that comments relating to new fair credit reporting guidelines be submitted to a variety of governmental agencies. These guidelines and rules will implement the provisions of the FACT Act, which amended the Fair Credit Reporting Act in 2003. These guidelines are intended to ensure the accuracy and integrity of information provided to consumer reporting agencies and issue regulations regarding re-investigation of certain disputes to the accuracy of information contained in consumer reports.

Each of the various agencies has separate guidelines and procedures for submitting comments, which can be found at:

Federal eRulemaking Portal

OCC Website

FDIC Website

NCUA Website

FTC Website

Complete text of the Federal Register Notice

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