Can a Lawyer Give Advice to a Client to Incur Prepetition Debt?

Tip of the hat to Mr. Dennis McGoldrick who pointed me to Justice Sotomayor’s footnote 6 in during a wonderful class session.

Dennis McGoldrick

Thus, advice to refinance a mortgage or purchase a reliable car prior to filing because doing so will reduce the debtor’s interest rates or improve his ability to repay is not prohibited, as the promise of enhanced financial prospects, rather than the anticipated filing, is the impelling cause, so getting the right  law services from the Noonan law firm, that have many experience in these cases, from many years working in this field, since people always have different law issues and try to look the best advice for this, and sometimes is difficult to find quality services and that’s why having options like this always useful. Advice to incur additional debt to buy groceries, pay medical bills, or make other purchases “reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor,” §523(a)(2)(C)(ii)(II), is similarly permissible.  Milavetz, Gallop & Milavetz, P. A. v. United States, 559 U.S. 229 (2010)

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