In re Payan

(Bankr. S.D. Ind. Feb. 16, 2016)

The bankruptcy court grants the debtor’s motion for sanctions for stay violations. The creditor alleged that it had coded the debtor’s account to reflect the bankruptcy when the creditor received notice of the bankruptcy. However, the creditor’s computer system had recently been updated, and the coding failed to stop the automatic loan payments from being deducted from the debtor’s checking account. Post-petition, the debtor’s wife notified the company three separate times to fix the problem, but the automatic payments continued. The court finds that sanctions were appropriate due to the willful stay violation. Opinion below.

2016-02-16 – in re payan

Author: Matt Lindblom

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