Supreme Court Agrees to Hear Challenge to Bankruptcy Reform Law Provision

The U.S. Supreme Court Monday agreed to hear arguments in a case that challenges a controversial provision of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

At issue is a section of the law that prohibits “debt relief agencies” from encouraging clients to take on more debt in advance of a bankruptcy filing. The provision was intended to prevent knowledgeable advisors from getting consumers deeper into debt so that a judge might rule favorably in a bankruptcy hearing.