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Federal Judge Upoholds Bankruptcy Law Challenge
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A federal judge in Connecticut has upheld a challenge to the nation's bankruptcy law, saying some of its restrictions on attorneys are unconstitutional.

The lawsuit in question was filed in 2006 by organizations representing thousands of attorneys.  They object to a requirement in the bankruptcy law passed in 2005, that mandates specific advice for their clients.  Under the requirement, attorneys must not counsel clients to go deeper into debt.  

Many attorneys believe this is too restrictive, as there are occasions in which debts must be incurred in dealing with a bankruptcy situation.  That view was upheld by US District Court Judge Christopher Droney, who ruled that the restriction is to broad, and unnecessarily interferes with an attorney’s duty.  

The judge granted a preliminary injunction that prohibits enforcing the provision.  On other questions addressed in the lawsuit, Droney ruled in favor of the government.  The new bankruptcy law, which was the most sweeping reform of the code in a generation, has caused controversy from its initial passage.  The US Justice Department says it will now review this latest ruling.