Debt Relief Counselors Compared To Bankruptcy Lawyers

Only licensed attorneys may represent debtors in bankruptcy court. In addition to a state bar license, attorneys who regularly represent clients in federal courts, including bankruptcy courts, must obtain a supplemental federal license from the clerk of the federal district in which they appear. The term debt relief counsel is a generic moniker often used when referring to credit counselors or to lawyers who advise clients of rights and options in lieu of filing bankruptcy. Many lawyers develop successful practices negotiating debts, settling debts, and litigating specious claims for the sole purpose of avoiding bankruptcy.