The High Court Stance In Milavetz V. US

Law360, New York (March 17, 2010, 12:39 PM EDT) -- In 2005, Congress enacted substantial revisions to the Bankruptcy Code through the Bankruptcy Abuse and Consumer Protection Act (BAPCPA). One provision that attracted relatively little attention at the time imposed various communication and disclosure rules on a class of bankruptcy professionals termed “debt relief agencies.”

These rules took on new importance for bankruptcy lawyers when the U.S. Supreme Court handed down its recent decision in Milavetz Gallop & Milavetz PA, et al. v. United States.

The threshold issue in Milavetz was whether attorneys qualify as “debt...
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