Western Michigan Legal Services Explains Why New Bankruptcy Reform
Tuesday, May 03, 2005
- Organization: The Brennan Center
Legal aid programs are finding it harder to recruit pro bono help for bankruptcy and consumer debt cases because of the bankruptcy reform law recently signed by President Bush, according to LSC grantee Western Michigan Legal Services (WMLS). The law holds attorneys personally accountable for the accuracy of debtors' financial information, a requirement that will force counsel in bankruptcy cases to order additional audits and reports, making the filing process more expensive. The new law will also either raise the cost of malpractice insurance for attorneys in bankruptcy cases or exclude such cases from coverage. Michael Chielens, WMLS' executive director, says that because of the added expense and the increased risk of sanction for lawyers when a client's financialinformation is found inaccurate, it is already more difficult to recruit pro bono attorneys for these cases.
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