Breaking: Connecticut District Court Judge Holds Portions of New Bankruptcy Law Unconstitutional

In a significant decision, a Connecticut Federal District Judge has ruled that portions of the revised Bankruptcy Act implemented in 2005 are unconstitutional. Specifically, Judge Christopher Droney has ruled that the requirement that attorneys designate themselves as "Debt Relief Agencies" is an unconstitutional restriction on the right of free speech.

The Bankruptcy Act provides that as attorneys, we are what Congress called "Debt Relief" agencies, and accordingly, we had to include the statement: "we have been designated by Congress as a 'Debt Relief Agency. We help people obtain relief from their debts through the use of the United States Bankruptcy Code." I have always thought this to be a bit of insanity codified, but that's just my Libertarian streak.

In Connecticut, at least, I have been proven correct.

In other parts of the Opinion, Judge Droney does rule that other portions of the revised Bankruptcy Act are Constitutional so it is not a total victory but at least it is a foot in the door.

The name of the case is Connecticut Bar Association, et al vs. United States of America. If anyone is interested, please contact me and I can forward them a copy of the decision at no charge.