Minnesota Court Holds “New” Bankruptcy Law Unconstitutional

The bankruptcy reform that took place in October of 2005 caused complications for everyone involved in the bankruptcy process–new pre-filing requirements, new post-filing requirements, greater responsibility placed on attorneys for researching the accuracy of information provided by their clients (and the attendant increased expense), a multi-step means test to determine whether one could file for Chapter 7 bankruptcy, and more. But one of the gravest concerns surrounding the new law related to the restrictions placed on consumer bankruptcy attorneys–restrictions that might prohibit attorneys from giving accurate, legal advice to their prospective bankruptcy clients.

Those provisions were challenged almost immediately, and the Milavetz case in Minnesota was among the first to challenge the Constitutionality of those restrictions. Nearly a year and a half later, that court has entered a summary judgment order declaring that those restrictions cannot be applied to Minnesota attorneys.

One Response to “Minnesota Court Holds “New” Bankruptcy Law Unconstitutional”

  1. Mike Smith Says:

    Great info. Thanks

    MIke
    http://www.your-bankruptcy-information.com

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