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1994 SESSION

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LD3361212
HOUSE BILL NO. 898 Offered January 25, 1994 A BILL to amend and reenact § 54.1-3905 of the Code of Virginia, relating to what constitutes the unauthorized practice of law. ---------- Patron--Dillard ---------- Referred to Committee for Courts of Justice ----------

Be it enacted by the General Assembly of Virginia:

1. That § 54.1-3905 of the Code of Virginia is amended and reenacted as follows:

§ 54.1-3905. Furnishing advice and services for compensation in connection with certain debt-pooling plans deemed practicing law.

The furnishing of advice or services for compensation to a debtor in connection with a debt-pooling plan pursuant to which the debtor deposits funds for the purpose of distributing them among his creditors, except as authorized for nonprofit agencies pursuant to § 6.1-363.1, shall be deemed to be practicing law. Any person or agency not so authorized or who is not a member of the Virginia State Bar who furnishes or offers to furnish such advice or services for compensation shall be in violation of this section. However, the management of accounts for a debtor, including making timely or scheduled payments to creditors when there is no contact or negotiation with the creditors on behalf of the debtor, for the purpose of designing a debt liquidation plan which may involve the postponement of payments or reduction of charges (i.e., a debt-pooling plan) does not constitute practicing law or providing debt counseling services. Any person who violates this section shall be guilty of a Class 1 misdemeanor.