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Texas Bankruptcy Lawyers - "What happens if creditors try to collect while bankruptcy is pending?"
If creditors attempt collection any debt while a Texas bankruptcy case is pending, court sanctions
may be ordered by the court. Creditors and their lawyers are allowed to collect only specific debts
and take specific actions which are authorized by the court. 11 U.S.C. 362 sets
forth exceptions to the automatic stay. If a creditor desires to proceed with
collection efforts, a motion must be filed seeking permission. Creditors who fail to obtain court permission are
subject to sanctions. If creditors attempt collection of a discharged debt after a case is closed,
the procedure is similar. The debtor or the debtor's lawyer may ask the court to reopen the case and
impose sanctions upon the creditor. Available sanctions include a finding of
contempt of court, specific injunctive relief, and the imposition of fines and
incarceration. The most common sanction is the imposition of a civil fine.
Texas Bankruptcy Lawyers & Employer Liability
The code also specifically prohibits employers and their lawyers to discriminate against
employees because of bankruptcy. To become actionable, the employee's
bankruptcy proceeding must be the sole basis for discrimination. In practice,
employers are well versed on discrimination law, and well advised by their
attorneys concerning "plausible deniability." Any other basis, such as those
commonly documented by memorandum warning of poor job performance, often relieve
employers from liability. For employees, the bankruptcy discrimination statute is
grossly ineffective.
All debtors and their attorneys have questions about current laws.
Board certified consumer bankruptcy specialists in Texas refer to the
Code regularly, as well as review slip opinions of new case decisions as
they become available. The process is organic, in that the law,
benefits, rights and duties of debtors changes in response to the
current political environment, and in turn, require a constantly
changing approach in court to gain favor. Also be aware, each debtor and
their attorney are responsible for legal compliance with all Texas
bankruptcy laws regardless of actual knowledge of recent changes. For
this reason, debtors filing pro se seldom achieve the results as
favorable as debtors who are represented by a qualified consumer
specialists who is familiar with current changes and requirements.
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