(Bankr. W.D. Ky. Nov. 16, 2016)
The bankruptcy court grants in part and denies in part the debtor’s motion for sanctions for violation of the automatic stay. The government agency sought to collect its loan default claim by set off against the debtor’s tax refund. The debtor filed bankruptcy, and the government effected the set off before its system flagged the account for the bankruptcy. The court finds a technical violation of the automatic stay but also finds that a set off would have been appropriate and there was no evidence that a stay relief motion would have been denied. Accordingly, the court awards the debtor a minimal amount for the inadvertent stay violation. Opinion below.
Attorney for Debtor: Julie Ann O’Bryan
Attorney for Creditor: Assistant U.S. Attorney, Jessica R. C. Malloy
Author: Matt Lindblom