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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Barron & Newburger Recognized for Bankruptcy Litigation

U.S. News & World Report included Barron & Newburger, P.C. in its Best Lawyers rankings. The firm was listed as Tier 1 in Bankruptcy Litigation for the Austin market. Bankruptcy Section head Stephen Sather said that the firm has never shied away from the courtroom and that the best way to obtain a good settlement…

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Sather profiled in Austin Business Journal

The Austin Business Journal published a profile of Stephen Sather, the head of the bankruptcy section at Barron & Newburger.  The article, which appeared in the December 4, 2020 issue was titled “The Wisdom of Bankruptcy Law Expert Steve Sather.”

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Court Rules “Informational” Letters Did Not Violate Discharge

A recurring problem in bankruptcy is how lenders can provide information about a debt to a borrower without violating the discharge or the automatic stay.    In some cases the borrower may wish to continue making payments and would appreciate receiving payment notices.   In other cases, the lender may be required to send notices to the…

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Proofs of Claim on Time-Barred Debts Do Not Violate the FDCPA

A divided Supreme Court has ruled in Midland Funding, LLC v. Johnson that filing a time-barred proof of claim in bankruptcy does not violate the Fair Debt Collection Practices Act.  The opinion by Justice Breyer was joined by four conservative justices.  The opinion drew a dissent from Justice Sotomayor who was joined by Justices Ginsberg…

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Supreme Court Provides Harsh Lesson on the Importance of a Writing

Bankruptcy is intended to allow an honest but unfortunate debtor to obtain a fresh start.  In order to keep dishonest debtors from abusing the process, Congress has defined a class of debts which cannot be discharged in a bankruptcy proceeding.   One of the common exceptions to discharge is debts incurred through fraud.   However, the Bankruptcy…

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