In re Witham

(Bankr. E.D. Ky. Oct. 12, 2017)

The bankruptcy court awards damages to the debtor for the creditor’s willful violation of the automatic stay. The debtor had an agreement with the tanning bed salon in which the salon would deduct a monthly payment from her debit card. Despite numerous notifications of the bankruptcy and the violation of the automatic stay, the salon continued to make the deductions post-petition. The court enters an award for damages that includes attorney fees and punitive damages. Opinion below.

Judge: Wise

Attorney for Debtor: Grant M. Axon

2017-10-12 – in re witham

Author: Matt Lindblom

Springer v. RNBJ RTO LLC (In re Springer)

 

(Bankr. W.D. Ky. Aug. 16, 2017)

The bankruptcy court enters judgment against the creditor for its violation of the automatic stay. The creditor is a home furnishing leasing company that leased furniture to the debtors prepetition. While the bankruptcy case was pending, the creditor continued weekly withdrawals from the debtors’ account. The creditor then refused to return the funds and attempted to recover the leased furniture from the debtors’ home. The court awards damages for the amount withdrawn from the debtors’ account and attorney fees, and awards punitive damages in the amount of $5,000. Opinion below.

Judge: Stout

Attorney for Debtor: Ross Benjamin Neuhauser

Attorney for Creditor: Brian Kevin Darling

2017-08-16 – in re springer

Author: Matt Lindblom

Renner v. U.S. Bank National Association (In re Renner)

(Bankr. S.D. Ind. June 26, 2017)

The bankruptcy court dismisses without prejudice the debtor’s complaint against a foreclosing creditor because the court concludes it lacks subject matter jurisdiction. The debtor filed the complaint alleging numerous causes of action, including violations of the automatic stay. However, the alleged acts occurred at a time when the subject property was no longer property of the estate. Opinion below.

Judge: Carr

Attorneys for Debtor: Sabin, Shea & Des Jardines LLC, J. Andrew Sabin

Attorneys for Creditor: Rubin & Levin, Reynold T. Berry, Deborah Caruso, Ian Peter Goodman, Cassandra A. Nielsen, Meredith R. Theisen

2017-06-26 – in re renner

Author: Matt Lindblom

Spearman v. Commonwealth Credit Union

(Bankr. W.D. Ky. Mar. 9, 2017)

The bankruptcy court grants summary judgment in favor of the creditor in this adversary proceeding in which the debtor alleged violations of the automatic stay and claims under the Kentucky Consumer Protection Act. The court holds that the creditor bank’s restriction of the debtor’s electronic privileges with respect to her accounts did not violate the automatic stay. Opinion below.

Judge: Stout

Attorney for Debtor: Ross Benjamin Neuhauser

Attorney for Creditor: Christopher M. Hill

2017-03-09 – in re spearman

Author: Matt Lindblom

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

Weary v. Poteat

(6th Cir. Sep. 30, 2015)

The Sixth Circuit affirms the lower courts, holding that the creditor willfully violated the automatic stay and punitive damages were appropriate. The creditor had been the debtor’s landlord. After the petition was filed, the creditor sent a letter to the debtor threatening to pursue criminal charges against the debtor. The lower court determined that the purpose for sending the letter was to coerce payment for rent owed and that the creditor was aware of the bankruptcy stay. The creditor argued that the criminal prosecution exception to the automatic stay applied, but the court held it did not. The creditor never pursued criminal charges and the letter would not have been necessary to do so. Opinion below.

2015-09-30 – weary v poteat

Author: Matt Lindblom

Walro v. The Lee Group Holding Co., LLC (In re Lee)

(Bankr. S.D. Ind. Dec. 18, 2014)

The bankruptcy court grants the trustee’s request for an order holding that the Indiana limited liability company and its members violated the automatic stay when they executed a resolution terminating the debtor’s voting rights post-petition. The debtor was the manager of the LLC and had control of the LLC’s business and affairs as of the petition date. After the petition was filed, the other members of the LLC executed the resolution and appointed a new manager without court approval. The court analyzes the terms of the operating agreement and Indiana LLC law and determines that the debtor’s interest in the LLC became property of the estate and the act to terminate his voting rights was a violation of the automatic stay. Opinion below.

2014-12-18 – walro v the lee group