Bankruptcy Act Violates First Amendment, Judge Rules

Law360, New York (July 28, 2006, 12:00 AM EDT) -- A federal judge ruled Wednesday that a section of the Bankruptcy Abuse Prevention and Consumer Protection Act violated the First Amendment right to free speech.

The ruling, handed down by Judge David C. Godbey of the U.S. District Court for the Northern District of Texas, criticized one section of the bill in particular that prevents attorneys from advising clients to take on more debt.

According to the judge, Congress initially passed BAPCPA to end the manipulation of the system by people who took on additional debt...
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