Proceed With Caution! Understanding Ipso Facto Clauses In Bankruptcy

The phrase ipso facto is Latin for “by the fact itself.” Ipso facto clauses are sometimes included in lease and purchase contracts, and they assert that if the lessee or purchaser becomes insolvent, or files for bankruptcy protection, then the contract has been breached. In other words, under such a clause the very act of filing for bankruptcy protection constitutes…

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Decoding The Petroleum Marketing Practices Act (PMPA) As It Pertains To Bankruptcy

A gasoline retailer defaults on its obligations under an ongoing Franchise Agreement that it has with a brand name in the oil & gas industry. What steps are available to the franchisor to protect its economic interests in that particular station or station(s)? How about if the franchisee/retailer files for bankruptcy protection? As the Energy Capital of the World,…

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BNPC Attorneys Explain Merchant Cash Advances

Barbara Barron and Stephen Sather co-authored Why MCA?  Adding Havoc to Chaos in Vol. 33, Issue No. 3 (July/Aug./Sept. 2019) of Commercial Law World Magazine.   The article explains the relatively new phenomenon of merchant cash advances, which have been described as the merchant to merchant equivalent of consumer pay-day lending.   Ms. Barron & Mr. Sather…

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Texas Super Lawyers Recognizes Three Barron Newburger Attorneys

Manuel Newburger, Barbara Barron and Stephen Sather were each named to the 2019 edition of Texas Super Lawyers, a Thomson Reuters publication.   Mr. Newburger, who has been listed continuously since 2005, was honored as a Top Rated Class Action & Mass Torts Attorney.   Ms. Barron and Mr. Sather were both recognized as Top Rated Business…

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Robert Shannon Joins Barron & Newburger, P.C.

Robert “RJ” Shannon, a talented bankruptcy counsel has joined Barron & Newburger as an attorney in its Austin Office. RJ will join the firm’s Bankruptcy and Reorganization practice group, where he will focus on business reorganization and bankruptcy litigation. For the last three years, Mr. Shannon has represented debtors, committees, trustees and creditors in bankruptcy…

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Supposed Rejection of Arbitration Clause is Rejected

A clever debtor was nevertheless unsuccessful in trying to use the Bankruptcy Code to escape a well-drafted arbitration clause contained in a credit card agreement.  In Mines v. Galaxy Int;l Purchasing, Mines filed a putative class action contending that Galaxy violated Section 1692g(a)(2) of the FDCPA by failing to identify the current owner of his…

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Sather Recognized for Pro Bono Work

Stephen Sather, the head of Barron & Newburger’s bankruptcy section, was honored by Volunteer Legal Services of Central Texas at the Judge Suzanne Covington Pro Bono Service Awards Reception.   Mr. Sather was recognized for handling five or more pro bono bankruptcy cases in the past year.

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USAA Consent Order: The Criticality of Sensible Procedures

Last week, the CFPB issued its first consent order of 2019 and the its first consent order under Director Kathleen L. Kraninger. The Consent Order is with USAA Federal Savings Bank dealing with violations of the Electronic Funds Transfer Act, 15 U.S.C. § 1693, et seq., its implementing regulation, Regulation E, 12 C.F.R. pt. 1005,…

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Surviving Financial Distress from COVID-19 in the Restaurant, Bar, and Service Industry

By: R. J. Shannon, Esq.[1] The service industry is precarious even in the best of times. Remaining profitable always requires innovation and consistent excellence to remain profitable, especially in a place with tight competition and margins like Austin. These are far from the best of times. Public health authorities have canceled major events like SXSW…

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