Court to decide if bankruptcy law stifles lawyers

From the Associated Press:

WASHINGTON (AP) — The Supreme Court will decide whether a new bankruptcy law applies to lawyers and whether their free speech rights are violated by a ban on telling clients to incur more debt.

The high court on Monday agreed to hear arguments from both a law firm and government regulators challenging a lower court ruling.

A 2005 bankruptcy law bans “debt relief agencies” from advising clients to incur more debt before filing bankruptcy.

The 8th U.S. Circuit Court of Appeals in St. Louis ruled last year that some lawyers can be considered debt relief agencies. But the appeals court also ruled the bankruptcy law ban violates the lawyers’ First Amendment rights.

The cases are Milavetz v. United States, 08-1119 and United States v. Milavetz, 08-1225.