• CBA Bankruptcy Decisions
  • September 9, 2010 | Authors: Carl T. Gulliver; Christopher M. Royston
  • Law Firm: Coan, Lewendon, Gulliver & Miltenberger, LLC - New Haven Office
  • The United States Supreme Court held that Attorneys who provide “assisted persons” with “bankruptcy assistance” are “debt relief agencies...” in accordance with the definitions of such terms added to Title 11 of the United States Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”). In the case of Milavetz, Gallop & Milavetz, the Court also held provisions of §528(a) and (b)(2), requiring certain disclosures in advertising by debt relief agencies, are permissible state infringement on free speech. Perhaps most importantly, the Court overturned the opinion of the United States Court of Appeals for the Eighth Circuit in one respect. The Supreme Court, in an opinion by Justice Sotomayor, found that the §526(a)(4) prohibition of an attorney's advising an assisted person to incur debt "in contemplation of" bankruptcy in fact is permissible under the First Amendment.