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NACBA Files Brief in Second Circuit Challenging Debt Relief Agency Provisions

Posted: February 26, 2009.

NACBA, along with the Connecticut Bar Association and other plaintiffs, has filed its brief in the case of Connecticut Bar Association v. Holder, challenging the application of the Debt Relief Agency provisions, 11 U.S.C. 526-528, to attorneys. The case filed on behalf of all NACBA members, resulted in a mixed result in the district court.  That court held the"gag rule" barring advice about incurring debts to be unconstitutional, and struck down the advertising requirements with respect to attorneys who do not represent debtors in bankruptcy. But it held that attorneys were debt relief agencies, and otherwise upheld the requirements of mandatory disclosure, advertising, and having a written contract executed within 5 days. The brief filed in the Second Circuit challenges all of those adverse rulings.
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