Top bankruptcy law stories of 2009
By:
Reni Gertner
Published: December 24, 2009
Tags: Bankruptcy Abuse Prevention and Consumer Protection Act, bankruptcy filings, CHAPTER 13, Chrysler bankruptcy, debt relief agency, GM bankruptcy, loan modification, National Association of Consumer Bankruptcy Attorneys, Obama, student loans
It started out as a busy year for bankruptcy attorneys – and it just became busier as filings continued to rise.
From the start of 2009, experts warned novice bankruptcy attorneys to do their homework before jumping into the specialized practice niche.
Looking for a way to help clients avoid foreclosure, consumer bankruptcy attorneys took to Capitol Hill early in the year, urging lawmakers to support legislation that would allow bankruptcy judges to modify mortgages to help homeowners keep their houses. But the measure was killed in Congress.
In its stead, President Barack Obama’s loan modification program promised to help clients facing foreclosure. And by the fall, the program reported success, having helped 500,000 with mortgage relief.
But attorneys say that the loan modification program is making their practices more complicated.
While consumer bankruptcy attorneys contended with foreclosures and loan modifications, personal injury attorneys were focused on the potential implications of the big Chrysler and GM bankruptcies on their clients’ claims.
As of early December, the situation appeared to be looking up for tort claimants affected by the GM bankruptcy.
And last but not least, the U.S. Supreme Court agreed to hear a number of cases this year that could have a significant impact on bankruptcy practice in the year ahead.
The bankruptcy case on the docket that received the most attention involves controversial questions about the application of the 2005 Bankruptcy Abuse and Consumer Protection Act.
The ruling could clarify the limits on what bankruptcy attorneys can advertise and what advice they can give their clients, determining whether attorneys are “debt relief agencies” under the Act.
The answers to some other questions that concern bankruptcy attorneys are also expected in 2010, including:
Can a student loan be discharged in bankruptcy without a finding of undue hardship?
-Reni Gertner
© Copyright 2012 Lawyers USA. All Rights Reserved.
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[...] Top bankruptcy law stories of 2009 It started out as a busy year for bankruptcy attorneys – and it just became busier as filings continued to rise. From the start of 2009, experts warned novice bankruptcy attorneys to do their homework before jumping into the specialized practice niche. See the top bankruptcy law stories of 2009. [...]