Cadwell v. Kaufman, Englett & Lynd, PLLC

At issue was whether a provision in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, 11 U.S.C. 526(a)(4), —on advice to incur debt to pay for a lawyer's bankruptcy-related representation—likewise entailed an invalid purpose requirement. The Eleventh Circuit held that a debt-relief agency (including a law firm) violates section 526(a)(4) if it advises a client to incur additional debt to pay for bankruptcy-related legal representation, without respect to whether the advice was given for some independently "invalid purpose"; plaintiff's allegation, in this case, that defendant law firm instructed him to pay his bankruptcy-related legal bills by credit card stated a viable claim under section 526(a)(4); and none of the constitutional arguments that the firm presented to the court warranted invalidating the statute on First Amendment grounds. View "Cadwell v. Kaufman, Englett & Lynd, PLLC" on Justia Law