Asked by Alyssa Cansler on Jun 22, 2024
Verified
The Bankruptcy Act of 2005 increases the responsibility of a debtor's attorneys thereby raising concerns that bankruptcy practice may become less attractive because:
A) the attorney has to operate on relatively thin margins as provisions increase along with costs and risks.
B) the attorney owes a duty to client for getting the debtor's property appraised.
C) the attorney has to call a meeting of all the creditors of the debtor.
D) the attorney has to classify the priority of creditors as per the 10 classes of priority given in the Bankruptcy Code.
Bankruptcy Act of 2005
A comprehensive law passed in 2005 in the United States, reforming bankruptcy law and introducing significant changes to the bankruptcy process.
Debtor's Attorneys
Lawyers who represent individuals or entities that owe money to another party.
Bankruptcy Practice
The area of legal practice focusing on the laws and procedures governing bankruptcy and insolvency, including the rights of creditors and debtors.
- Examine the ethical and legal responsibilities of attorneys and trustees within bankruptcy proceedings.
Verified Answer
MA
mohammad alnowaifJun 28, 2024
Final Answer :
A
Explanation :
These provisions have raised concerns that bankruptcy practice will be less attractive to bankruptcy attorneys that handle a large volume of cases because the provisions will increase their costs and risks-and they operate on relatively thin margins.
Learning Objectives
- Examine the ethical and legal responsibilities of attorneys and trustees within bankruptcy proceedings.