Suit Challenges New BankruptcyLaw
ST. PAUL, Minn. - (11/29/05) -- A local law firm has filed suitchallenging provisions of the bankruptcy reform law, claiming thenew law is unconstitutional because it potentially limitsattorneys' ability to speak with their clients about financialmatters. The suit, filed by the firm Gallop and Milavetz, claimsthat the law is so vague in defining what it means by the term'debt relief agencies' when referring to the mandatory financialeducation provisions for bankruptcy filters, that it limits theattorneys' ability to 'ethically and competently advise andrepresent their clients and illegally restricts the attorneys'right to free speech.' The credit union-backed law limits the typeof advise debt relief agencies can give clients about incurringmore debt while they are contemplating bankruptcy. This could beinterpreted as preventing attorneys from discussing all aspects offuture financial planning with their clients, according to thesuit.