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June 27, 2025

AI & Ethics in Bankruptcy Law: What You Need to Know

Lexis Nexis Practical Guide

Nelson Mullins attorneys Shane Ramsey and Mackenzie Keffalos authored a practice note published in Lexis Nexis Practical Guidance, “AI & Ethics in Bankruptcy Law: What You Need to Know.” In the article, they explore the ethical issues faced by bankruptcy professionals, particularly with emerging issues in Bankruptcy ethics, such as the role of artificial intelligence in the practice of law. In one section, they delve into the ethical considerations when managing client’s social media.

As counsel, it is important to consider the ethical issues when advising clients about their social media accounts, including modifying social media account privacy settings, preserving evidence, and advising clients about what to post and what not to post.

Some damaging content that comes to mind specifically in a bankruptcy matter is the posting of assets (e.g., a boat) or evidence of additional income that was not disclosed in the bankruptcy petition. To be clear, counsel should always advise the client to truthfully disclose their income and assets, otherwise, both counsel and the debtor may be subject to serious discipline.

Subscribers can read the full article here.