Bankruptcy grace period

[John Mage]

Justin, speaking as a lawyer who has on several occasions practiced in
bankruptcy court, advising folks to file for bankruptcy is NOT the
unauthorized practice of law. It's what good friends do for each other.
Making people think that they have to deal with lawyers even to decide
to file will discourage many people from doing what is in their interest
to do. Consulting a bankruptcy practitioner is a wise thing to do, but a
knowledgeable friend (or someone who has gone through the process) may
be every bit as useful. Since you have the means at your disposal, why
not find out if in the bill there is indeed a six month "grace period"
after the act takes effect?

john mage   

Justin Schwartz wrote:
> 
> As an attorney, I would advise folks not to engage in unauthorized practice
> of law, which is itself illegal. "Practice of law" is application of legal
> rules to specific sets of real facts for the purpose of offering legal
> advice. Tell people who are contemplating bankruptcy to see a good
> bankruptcy lawyer. --jks
> >
> >
> >I've been bugging an actor friend of mine to file for bankruptcy and
> >sending him ominous articles about the doom to come.  But true to the
> >spirit that got him in this spot in the first place, he immediately
> >spotted that one of my articles mentioned a six-month grace period -- so,
> >he reasoned, he could put off filing that much longer.  Is there a hole in
> >this argument that I should tell him about?  Or am I just an ant arguing
> >with a grasshopper?  The article that inspired his procrastination is
> >excerpted below.  I have to admit, if there isn't any increased danger of
> >getting caught out, there's something to be said for getting his money's
> >worth.  Besides the fact that, when he gives up his cards, he may have to
> >throw in the towel on this dream earlier than he intended.
> >
> >Michael
> >
> >New York Times
> >
> >March 9, 2001
> >
> >Bill to Restrict Bankruptcies May Lead to Surge in Filings
> >
> >By RIVA D. ATLAS
> >
> >    A s legislation to tighten the rules for filing for bankruptcy gathers
> >    momentum in Congress, consumers facing a financial squeeze are being
> >    advised to act sooner rather than later.
> >
> >    Lawyers say they are cautioning clients not to delay, and some are
> >    running advertisements. Those actions and a continued weakening of the
> >    economy are likely to contribute to a surge in filings this year.
> >
> ><snip>
> >
> >    "My Chapter 7 business is up 25 percent so far this year," said
> >    Barbara Wyskowski, a consumer bankruptcy lawyer based in Sea Girt,
> >    N.J., adding that she gets several e- mail inquiries a day about the
> >    legislation. Ms. Wyskowski predicts that business will pick up more if
> >    the law is passed. From the time the legislation is signed into law,
> >    there will be a six-month period before the changes take effect.
> >
> >    Robert A. Goering Sr., a consumer bankruptcy lawyer in Cincinnati, who
> >    noted little pickup in his work so far, said: "I'd expect a 10 to 15
> >    percent increase in bankruptcy filings if the law passes in the six
> >    months preceding its implementation. Then I'd expect a dramatic
> >    decline after it becomes effective."
> >
> ><end excerpt>