ABA Amicus Brief Opposes Application of
Bankruptcy Act Restrictions to Lawyers

CHICAGO, Sept. 2, 2009—The American Bar Association argues in an amicus curiae brief filed late yesterday with the Supreme Court of the United States that application of  “debt relief agency” provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act to lawyers would restrict their ability to provide appropriate advice to clients and risk subjecting privileged communications to discovery.  The association said including lawyers under the agency definition would violate historic state regulation of lawyers and subject lawyers to rules and liabilities that directly conflict with their ethical responsibilities.  According to the brief in Milavetz, Gallop & Milavetz, P.A. v. United States, the statutory prohibitions on advising clients to incur new debt could prevent lawyers from giving legal counsel that could “ultimately stave off the need to file for bankruptcy” or otherwise be in the client’s best interest.  Enforcement of the restrictions on advice would require making privileged communications subject to discovery, in violation of attorney‑client privilege, the association said.  To access the ABA brief, click here.

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