Since the economy took a major plunge several years ago, thousands of individuals and businesses have been forced to file for bankruptcy. Entire counties have also been forced to file, such as Jefferson County in Alabama. At the end of last year, county officials determined that they had no choice but to file for municipal bankruptcy, also known as Chapter 9 bankruptcy. The judge overseeing their case reviewed a motion from one of the creditors for an exemption from a stay in the proceedings. In any bankruptcy case, creditors are given a stay, which means that they are not allowed to contact the debtor during the proceedings.

This creditor not only wanted to have the stay removed but wants to regain control of the company's property in the county. As the operator of the county's sewer system, the creditor stands to lose a serious amount of money while the bankruptcy proceedings are ongoing. The judge denied the motion, however, allowing the bankruptcy proceeding to go ahead as planned.

Should you find that you are on the brink of bankruptcy in Texas, it may be wise to consult a Houston bankruptcy attorney from our law firm as we can advise you of ways to confront your financial challenges. To learn how we can be of assistance to you during these tough economic times, contact the Malaise Law Firm today to arrange a consultation.