You may remember from an earlier post that you are probably an “assisted person”. Another of our posts explained to you that your bankruptcy lawyer seems to be a “Debt Relief Agency”.
What do “Debt Relief Agencies” do for “assisted persons”. It seems that Congress thinks that they give “bankruptcy assistance”.
Here’s what the Bankruptcy Code says:
The term “bankruptcy assistance” means any goods or services sold or otherwise provided to an assisted person with the express or implied purpose of providing information, advice, counsel, document preparation, or filing, or attendance at a creditors’ meeting or appearing in a case or proceeding on behalf of another or providing legal representation with respect to a case or proceeding under this title.
Why does the Bankruptcy Code make this so complicated? For the past 35 years, I always that I was a lawyer who gave legal advice to a client.
But if I give you advice under the Bankruptcy Code, I am a Debt Relief Agency providing bankruptcy assistance to an assisted person.
Congress in 2005 tried to regulate the relationship between people and others who try to assist them in filing a bankruptcy case, whether or not they are attorneys. In particular, Congress tried to regulate what lawyers can tell their clients, whether or not the advice they might give their clients is legal or even in the client’s best interest. The Supreme Court recently heard arguments in a case in which this issue came up. Unfortunately, the Court did not seem very sympathetic to the bankruptcy attorney’s arguments. It seems that lawyers will have to continue to speak to you in riddles in order to comply with the law.
What can you do about it?
Your lawyer must comply with the law. You are an “assisted person” getting “bankruptcy assistance” from a “Debt Relief Agency.” So Congress has limited what your lawyer can say to you. Congress has told your lawyer to say certain things to you at certain times. It has told your lawyer to give you a fee agreement at or near your first meeting. Don’t let this put you off. It’s not your lawyer’s fault. Blame Congress. If you hear your lawyer speak in “governmental gobbledygook” to you, be sure to ask for straight talk. You’ll get it and you’ll be glad you did.
Lakelaw represents people in bankruptcy cases in Illinois and Wisconsin.
About David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney
David Leibowitz holds a B. A. in Economics from Northwestern University and received his J.D., cum laude, from Loyola University of Chicago School of Law where he also served as Note Editor of the law review. Admitted to the Illinois and Wisconsin bars, he is the managing member of Lakelaw, an interstate law firm with offices in Chicago, Skokie and Waukegan in Illinois and Kenosha, Wisconsin. He is nationally recognized for his work in identifying and pursuing mortgage related claims in the context of bankruptcy. David is a member of both the Illinois and Wisconsin bars and has practiced in bankruptcy courts throughout the country. He is a member of the American Bankruptcy Institute where he is the Co-Chair of the Commercial Fraud Committee. He is ta frequent contributor to the ABI Journal and speaker at ABI events. He is an author and editor in chief of the American Bankruptcy Institute Fraud Manual published in 2010. He is also a member and Director of the National Association of Bankruptcy Trustees, a member and frequent speaker for the National Association of Consumer Bankruptcy Attorneys and numerous state and local bar associations. He is Board Certified by the American Board of Certification in both Consumer Bankruptcy Law and Business Bankruptcy Law. David is also the publisher of Lakeblawg, www.lakelaw.com/lakeblawg, a blog dedicated to consumer and small business bankruptcy and mortgage foreclosure defense.
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