Pretzel & Stouffer

Trial Victory for Attorney and Credit Union re Bankruptcy Discharge Injunction

Jim Sipchen and Tom Draths recently obtained a finding of “not guilty” at trial on behalf of an attorney and a credit union who were alleged to have violated a bankruptcy court discharge injunction. Specifically, the plaintiff alleged that the attorney and credit union violated the injunction by filing four collection lawsuits against her after she had filed for bankruptcy and received a discharge of her debt. Plaintiff sought actual damages, punitive damages and attorneys’ fees in excess of $200,000. Jim and Tom were able to establish that their clients did not violate the discharge injunction because the plaintiff did not apprise them of the bankruptcy and her discharge order. Through diligent direct and cross-examination of a number of witnesses, Jim and Tom were also able to show the plaintiff had acted in manner which was inconsistent with an individual who was seeking to take advantage of the protections of the Bankruptcy Code.

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