A U.S. District Court judge in Minneapolis has recently ruled against a provision in the 2005 bankruptcy law.
Judge James Rosenbaum stated that a provision in the law denying attorneys from advising their clients to take on more debt while considering filing for bankruptcy “forbids truthful and possibly efficacious advice.”
Rosenbaum’s ruling denied the U.S. Government’s motion for dismissal of this case brought by Saint Paul, Minnesota bankruptcy attorneys and anonymous plaintiffs. The next move in the case is up to the U.S. Department of Justice.
Prior to the enactment of the new bankruptcy law in October 2005, many people developed a mistaken belief that they would not longer be able to file for bankruptcy. Consequently, there were a large number of Chapter 7 bankruptcy filings in the weeks prior to the law’s enactment.
A bankruptcy attorney in your area can explain how the law changes really impact you.
This entry was posted on Thursday, December 14th, 2006 at 9:20 am and is filed under Bankruptcy News and Events. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.