Supreme Court Uphold Lawyers’ Rights to Give Advice

The U.S. Supreme Court has ruled that it's okay for bankruptcy attorneys and debt relief agencies to advise their clients to take on more debt when considering filing for bankruptcy.

The case centers around the question, "Is it illegal for bankruptcy lawyers and debt relief agencies to advise their clients to take on more debt if doing so will help the individual?" The new bankruptcy laws of 2005 ban attorneys from giving clients such advice, claiming it is an abuse of the bankruptcy system.

But one Minnesota law firm challenged that law, arguing that taking on more debt is sometimes the right thing to do to help the client. The firm also claims the ban infringes on attorneys' First Amendment right to give "unfetter, candid advice."

The case found its way to the Supreme Court, where most justices were skeptical at first. In the end, Justice Sonia Sotomayor wrote that there was no reason to make a constitutional case out this issue, and she agreed that advising people to take on more debt may sometimes be the best course of action. She said it doesn't make sense to prohibit attorneys and debt relief agencies from advising clients about options that would be beneficial to both the clients and the creditors, and that as long as they are not intentionally abusing the bankruptcy system, there is no reason to ban attorneys from giving such advice.

If you are struggling to pay off your debt and are interested in learning about possible debt relief options, it's in your best interest to consult an experienced bankruptcy attorney. An attorney can review your current financial status to determine what type of bankruptcy you should file for or what other debt relief solutions may work for you. To find a layer in your area, please feel free to search our directory of bankruptcy lawyers from around the country.