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Judge Finds Arvest Violated Bankruptcy Code by Firing Employee

1 min read

Here’s an update on a recent article that generated quite a lot of reader interest (see Arvest Firing Challenged in Bankruptcy Court).

U.S. Bankruptcy Judge Ben Barry has ordered back pay for David Dwelle of Arkadelphia, who challenged his firing from an Arvest subsidiary because he couldn’t repay a credit card issued by Arvest Bank.

It wasn’t a complete victory for Dwelle, who was in the middle of a Chapter 13 bankruptcy reorganization at the time.

Barry ruled in favor of Arvest in several of the other counts Dwelle had raised.

“In this case, there is no evidence before the Court of coercion or harassment by Arvest,” Barry wrote in a 15-page order filed April 20.

Still, Barry found that Arvest violated bankruptcy code by firing Dwelle because his credit card debt was charged off in bankruptcy. Barry awarded Dwelle $33,399 for back wages and benefits, but that money will go to the Chapter 13 trustee to pay unsecured creditors.

Travis L. Starr, managing attorney of Honey Law Firm of Hot Springs, represented Dwelle. He has asked Barry to award him $50,000 for court costs and attorney’s fees. That motion is pending.

Jason Kincy, a spokesman for Arvest Bank, said in an email to Whispers, “because there are still pending issues before the court on this topic, it would be inappropriate for us to comment at this time.”

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