Attorney Joseph Coleman of Kane Russell Coleman & Logan (KRCL) has established a solid reputation as a skilled legal defender of creditors' rights--including foreclosures, collections and Claim and Delivery cases. His Firm, formed in 1992, is renowned as a mid-sized provider of high-quality legal services across the nation, focusing on the timely and cost-effective delivery of legal services, including:

• New Bankruptcy Laws
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Objections to Discharge
• Adversary Complaints

KRCL caters to clients who demand consistent high-level performance — whether during the critical stages of project development, the stresses of litigation, or the volatility of insolvency. The Firm's philosophy is to build long-term relationships by providing high-caliber legal representation in a cost-effective, client-responsive manner. The combination of large-firm experience and sophistication with smaller-firm agility and efficiency distinguishes KRCL from its competitors.

As of October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act took effect, enforcing tougher restrictions on debtors trying to file under Chapter 7 bankruptcy--making it easier for creditors to collect money that is owed to them. Attorney Joseph Coleman will advise you of your legal rights under the law, and will fight to keep your creditor collection rights protected in the future.

Typically, creditors get a bankruptcy notice and assume they have neither rights nor alternatives with respect to their claim against a debtor. However, creditors in bankruptcy are entitled to:

• Share in any distribution from the bankruptcy estate according to the priority of their claim. Most unsecured, non-wage claims come low in the priority scheme, and may receive little or nothing. 
• Be heard by the court in matters concerning the debtor's plan (in chapters 11, 12, and 13), the liquidation of the debtor's non-exempt assets, and payments from the assets of the estate.
• Challenge an individual debtor's right to a discharge or to discharge the creditor's particular debt.

Attorney Joseph Coleman, a founding director of the Firm, chairs KRCL’s Insolvency & Creditor Rights Section. He has substantial experience representing committees, suppliers, trade associations, financial institutions, real estate companies, trustees, examiners and debtors in a wide array of Chapter 11 litigation and other insolvency matters. He specializes in handling pre-bankruptcy workouts and restructurings, reorganization proceedings, adversary proceedings and virtually all aspects of bankruptcy and insolvency issues and related litigation.

"Our devotion to creative legal solutions has attracted a client base ranging from Fortune 500 corporations to small companies and high net worth individuals."

-Dallas Creditor's Rights Attorney Joseph M. Coleman

If you or someone you know in Dallas would like further information regarding creditor bankruptcy rights and creditor collections, call Attorney Joseph Coleman of Kane Russell Coleman & Logan at 866-435-3766, or use the contact form provided on this site to schedule a consultation.

Practice Areas and Legal Definitions

New Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapters 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

As of October 17, 2005, the requirements in which a debtor may file Chapter 7 bankruptcy have changed under the Bankruptcy Abuse Prevention and Consumer Protection Act. Debtors are required to seek budget and credit counseling six months prior to filing, financial "testing" is required to determine the debtor's capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who are presently eligible to file under Chapter 7 will have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual's credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7. For additional information related to New Bankruptcy Laws, contact Joseph Coleman of Kane, Russell, Coleman & Logan (KRCL).


Creditor’s Rights in Bankruptcy:
Upon a debtor filing for bankruptcy, a creditor should now:

1. Cease any collection action - including telephone calls, billing or law suits that might be pending against the debtor. The automatic stay protects the debtor and his property from all forms of collection during the bankruptcy. In Chapter 13, the stay also protects co-debtors on consumer debts.

2. File a claim with the court. The notice of the bankruptcy sent by the court clerk tells you where to file a proof of claim and the deadline for doing so. Act promptly since deadlines are strictly enforced in bankruptcy case. Attach a copy of any contracts or judgment concerning your claim, or a summary of the claim, if the supporting documents are voluminous to the proof of claim form. Get the claim form online if the court did not send one to you.

3. Consider whether your claim is dischargeable. Certain kinds of claims are non dischargeable in an individual's Chapter 7 bankruptcy case. Examples of non-dischargeable claims are certain obligations arising in divorce, debts incurred by fraud or willful and malicious acts by the debtor, or damages arising from drunk driving. Consult a lawyer promptly if your claim arguably falls in one of those categories where you must file an adversary proceeding in the bankruptcy case to preserve your claim after bankruptcy: the time lines are very short in bankruptcy. The complete list of debts not dischargeable in Chapter 7 is found in 11 U.S.C. 523.

4. Determine whether your claim is secured by the debtor's assets. Secured creditors have a lien giving them specific rights to the property which is the collateral for their claim. Most often, those rights are created by, and described in, a deed of trust on real property, a security agreement on personal property, or a judgment lien. Secured creditors have the best chance of getting relief from the automatic stay or "adequate protection payments" to prevent a decline in the equity available to secured their claim.

5. Share information with the trustee. If you suspect that the debtor's schedules aren't telling the whole story, which assets are concealed or have been transferred, contact the trustee and provide any documents or facts that might help the trustee recover money for the estate, or challenge the debtor's right to a discharge. Creditor vigilance is the best deterrent to abuse of the bankruptcy system. Creditors are entitled to question the debtor under oath about assets, liabilities and financial history at the first meeting of creditors or by separately scheduled examinations under Rule 2004 of the Federal Rules of Bankruptcy Procedure.

6. Monitor the progress of the case. Some bankruptcies are dismissed for the debtor's failure to comply with the requirements of the Code. When that happens, creditors are free to pursue collection according to state law. Sometimes cases originally classified as "no asset" cases blossom into asset cases from which a dividend may be paid.

If you or someone you know in Dallas would like further information regarding creditor bankruptcy rights and creditor collections, call Attorney Joseph Coleman of Kane Russell Coleman & Logan at 866-435-3766, or use the contact form provided on this site to schedule a consultation.

Frequently Asked Questions

The following information includes frequently asked creditor bankruptcy questions. The answers stated are general in nature and are not intended to apply to every situation. Each case is different and carries its own set of circumstances which must be taken into consideration by competent legal counsel. If you or someone you know in Dallas would like further information regarding creditor bankruptcy rights and creditor collections, call Attorney Joseph Coleman of Kane Russell Coleman & Logan at 866-435-3766, or use the contact form provided on this site to schedule a consultation.

What is the automatic stay?
This is an injunction that goes into effect automatically upon the filing of a bankruptcy. It strictly prohibits the commencement or continuation of any acts to collect on a debt that arose prior to filing the bankruptcy. This includes enforcement of judgments, creating or perfecting liens, and many other actions. (It does not apply to collecting alimony maintenance and support).

Can I still try to collect on a judgment after the debtor files bankruptcy?
No. However, you may have rights to pursue in the bankruptcy depending on what chapter was filed and whether you are secured by any of the debtor's property.

I hold a trust deed on the debtor's house and I am in the process of foreclosing when a bankruptcy is filed. What should I do?
First of all, you cannot proceed with the foreclosure. What you do next depends on what chapter the bankruptcy case was filed under and what the debtor's intentions are with respect to the property. If the property is the debtor's principal residence and he filed a Chapter 13, he will be required to stay current with your payments from that point forward and propose a plan to repay the past due amounts. You should either obtain a copy of the debtor's statement of intentions or contact the debtor's attorney to find out what his plans are with respect to your collateral. If the debtor filed Chapter 7, you can obtain permission from the court (via a Motion for Relief from the Automatic Stay) to allow you to proceed with your foreclosure.

Can the debtor lien strip (reduce the value of) or remove my lien against his/her real property?
If the real property is the debtor's principal residence, only under the following circumstances:
• You have a judgment lien (rather than a consensual trust deed based on a loan) against the debtor that has attached to her property prior to the filing of the bankruptcy case.
• The debtor may be able to avoid your lien even in a chapter 7 if it impairs the debtor's homestead exemption as that term is defined in the bankruptcy code, based on the value of the property and amount of senior liens and encumbrances on the date the bankruptcy case is filed.

I'm an unsecured creditor. How do I make sure the debtor is paying everything he should or that he has included all his assets?
This depends on what chapter is filed and how much you want to spend investigating everything. The bankruptcy papers that are filed may be obtained from the clerk of the court. You can review these papers to see if anything seems inaccurate to you. You may also obtain court approval to take the debtor's deposition if you wish to inquire in more detail as to the debtor's assets and debts.

I am in the middle of a lawsuit when the defendant files bankruptcy. What happens now?
The lawsuit must not proceed unless and until you obtain permission from the bankruptcy court. There may or may not be reasons for doing this (such as to determine, i.e. liquidate, the amount that is owed to you).

How do I get the debtor to reaffirm my debt?
Debtors may choose to reaffirm certain pre-bankruptcy obligations. This reaffirmation turns the debt into a post-bankruptcy obligation. This is desirable for creditors, but almost never for debtors. Extreme care must be exercised in seeking a debtor's reaffirmation as there are increasing court and other legal requirements for doing so.

How do I determine the deadline for filing a proof of claim?
Shortly after the bankruptcy filing, the court sends out a notice of bankruptcy that includes information regarding the date, time and place of the first meeting of creditors, the deadline for filing proofs of claim, and deadline for filing objections to discharge.

May a debtor add additional creditors after the case has been filed?
Yes. This may be done at any time. A debtor may also amend to correct or add any other information contained in the papers.

If I was not listed in the bankruptcy and didn't receive notice, can my debt still be discharged?
Generally, a debt that is not listed or scheduled on a bankruptcy petition will not be discharged unless the creditor has notice or actual knowledge of the case in order to timely file a proof of claim. However, if it is a no asset bankruptcy (meaning, no distribution would be made), most courts hold that the debt will be discharged even if it was not listed since there would be no distribution in any event. If you have grounds for objecting to the debtor's discharge, that time period may be extended if you received no notice of the bankruptcy.

How much does KRCL charge for creditor bankruptcy?
KRCL has very competitive prices, which fall within the range of the industry standard.  The Firm tailors fee arrangements for each client's needs. Due to the nature of law, each case is unique and KRCL has many fee structures to accommodate each client and each client's case based upon:

• Contingency 
• Retainer 
• Deposits
• Set Fees 
• Billable unit rates or any combination of the above

KRCL gives every case individual attention and will work with you to find the best rate plan. There will be no hidden costs. You will be informed of the fees for your case during your first meeting with Attorney Joseph Coleman.

Professional Profiles

Kane Russell Coleman & Logan offers a full range of legal services. Formed in 1992, the Firm has developed a reputation as a mid-sized provider of high-quality legal services across the nation, focusing on the timely and cost-effective delivery of legal services. If you or someone you know in Dallas would like further information regarding creditor bankruptcy rights and creditor collections, call Attorney Joseph Coleman of Kane, Russell, Coleman & Logan at 866-435-3766, or use the contact form provided on this site to schedule a consultation.

FIRM ADDRESS:
Kane Russell Coleman & Logan
1601 Elm St.; Ste. 3700
Dallas, TX 75201-4798
Phone: 866-435-3766
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

Joseph Coleman

EDUCATION:

• Southern Methodist University School of Law, J.D., 1985
• Editor, Southwestern Law Journal
• Member, Phi Delta Phi
• Creighton University, B.S.B.A., 1982
• Solon E. Summerfield Scholar
• Member of the accounting honor society Beta Alpha Psi

COURTS ADMITTED:

• State Bar of Texas
• United States Court of Appeals for the Fifth Circuit
• United States District Courts for the Northern, Southern, Eastern and Western Districts of Texas

PROFESSIONAL MEMBERSHIPS:

• College of the State Bar of Texas
• Dallas Bar Association, Chairman of Corporate Reorganization, Creditor Rights Section
• Dallas County Bar Association's Bankruptcy and Business Litigation Sections
• Business Law Section of the State Bar of Texas
• Bankruptcy Reorganization Committee, American Bankruptcy Institute
• Texas Association of Bank Counsel

PUBLICATIONS:

• Frequent author and speaker on bankruptcy and creditors' rights issues, including publications by Mathew Bender, Callaghan and the Uniform Commercial Code Law Journal

RECENT HONORS:

• Named by peers among the best bankruptcy lawyers in America. Listed in Best Lawyers in America, 10th ed. (2003-2006), as published in Corporate Counsel Magazine, January 2003
• Recognized as one of Texas' "Super Lawyers" by Texas Lawyer Magazine

COMMUNITY ACTIVITIES:

• Trustee of the Catholic Foundation
• Founding Board member, Center of Thomas Moore Studies, University of Dallas
• Chairman, Rev. Richard J. Hauser Scholarship Fund
• Board Member, Dad's Club, Ursuline High School
• Coached in excess of 25 youth sports teams

PRACTICE AREAS:

• Bankruptcy
• Creditor's Rights
• Adversary proceedings
• Virtually all aspects of bankruptcy and insolvency issues and related litigation