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Are Attorneys 'Debt Relief Agencies' Under The BAPCPA?

By Catherine E. Lasky

Have you or any member of your firm appeared in a Chapter 7 or Chapter 11 bankruptcy proceeding on behalf of a consumer? Do you include the following language on your firm Web site or advertisements? “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

Well, according to the newly enacted Bankruptcy Abuse Pre-vention and Consumer Protection Act of 2005 (BAPCPA), attorneys practicing bankruptcy law may in fact be required to identify themselves as debt relief agencies. One of the new and significant aspects of the BAPCPA are the provisions designed to restrict and monitor the activities of so-called “debt relief agencies.” Among other requirements, Section 528(a)(4) mandates that a “debt relief agency shall … clearly and conspicuously use the following statement in such advertisement: 'We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.' or a substantially similar statement.” See generally Sections 526, 527 and 528 for the restrictions on and requirements for debt relief agencies. However, who and what a debt relief agency is, and more specifically, whether attorneys are debt relief agencies, remains a matter of great debate, dispute and confusion.

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