8 Mar 2010
U.S. Supreme Court Decides Milavetz BAPCPA Case
Justice Sotomayor, writing for the Court, joined in full by six Justices and in part by Justices Scalia and Thomas, the U.S. Supreme Court holds that attorneys who provide bankruptcy assistance are debt-relief agencies under the bankruptcy abuse law (opinion is here) and that the BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) does not violate the consitution in setting limitations on advice that “debt relief agencies” (including law firms) can give debtors.
The U.S. Supreme Court reversed the underlying Eighth Circuit decision, siding with the dissenting Judge Steven Colloton.
