Founder's Message

After eight years and three failed attempts, the credit card industry finally got the bankruptcy law "reform" changes they've been lobbying for. Signed into law on April 20, 2005, new law titled The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) took effect on October 17, 2005.

The new law, which marks the biggest change to bankruptcy law since 1978, prohibits some people from filing for bankruptcy altogether. And for those who manage to qualify for bankruptcy, it makes it harder to come up with manageable repayment plans and it has fewer protections from collection efforts than the prior law.

When I reviewed the changes in the bankruptcy law that were enacted in October 2005 I found much to be concerned with...the least of which was the substantial increase in potential liability. The new requirements for additional documentation built into the law made common sense given the changing focus of the "spirit" of the law…from debtors in need of relief…to potential “abusers” needing curtailing.

It then became very clear that attorneys will face unprecedented liability for their client's behavior under the new law. Verification of information is not only a requirement under the new law…it is essential for the economic well-being of attorneys that will continue to practice in the area of bankruptcy law.

Since many attorneys practicing consumer bankruptcy law today are solo practitioners or small firms these new requirements (legally and prudently) are going to place a heavy burden on their clients and their practices.

In reviewing the mandatory law changes with other local attorneys and trustees, the consensus of opinion is that several scenarios will result:

increased legal fees that will ultimately be passed on to clients already in financial distress and ultimately result in a diminished client base; and,

additional work that either has to be done by clients already stressed and even less understanding about why they need all the documentation OR done by the attorneys' staff...already overworked.

As a result, I founded a franchise called Aqurit BPO as a resource for those lawyers who wanted to outsource their petition preparation, in order that they may devote more time to resolving the issues created by the new law, while maintaining a profitable bottom line.

But then, who was going to do all the document prep, intake interviews and verification of assets that was created by new bankruptcy laws? Who was going to train all these people to facilitate the bankruptcy process?

In discussing possible solutions to minimize the effects of this new reality, I realized that concept of Aqurit BPO must be expanded.

The answer is The Scrivener's Society...a vocational educational association whose mission is to assist bankruptcy attorneys around and through the obstacles for practicing bankruptcy law post BAPCPA.

And, as long as the attorney retains control over their client and their filings, we felt comfortable assisting the clients in gathering the required documentation to support the new law. The Scriveners' Society formalizes this process both from a financial and represented point of view.

Our goal is to continue to provide solutions that help bankruptcy lawyer get back to doing what they do best…practice law! And hopefully, consumer prices will come down...time will tell.

On behalf of the staff of The Scriveners’ Society, I thank you for taking the time to learn more about our educational opportunities to help you advance your career goals. I hope you will consider enrolling in one of our certified programs and becoming a member of our organization.