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Supreme Court to Consider Revising Code

Last week, the U.S. Supreme Court heard oral arguments on a case with the potential to radically change current bankruptcy law. At issue are three provisions of the 2005 amendments to the Code.

Petitioner, Milavetz, Gallop & Milavetz, alleges that an attorney is not a “debt-relief agency” and therefore §526(a), which prohibits attorneys from encouraging clients considering filing bankruptcy to take on more debt, is a violation of free speech. Petitioners claim that §528(a)(4) and §528(b)(2)(B), which require attorneys to make certain disclosures when advertising, also violate the 1st Amendment.

The Justices are set to make their decision in about 90 days.

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