Bankruptcy grace period

Justin Schwartz jkschw at hotmail.com
Fri Mar 23 07:54:44 PST 2001


OK, but saying that if you wait until time t, there will still be a loophole that you can use, that might be unauthorized practice, no? I mean,a general point like, it would be a good idea for you to file, or; they law is changing, maybe you better do it before it does, I can see that. But advising people on the existence of fine print loopholes, grace periods, etc., that's what _we_ do, not nonattorney friends. It's like the difference between saying: you sound sick, better see a doctor, and: here, that this medicine. --jks


>
>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>

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