- No. 11-8062 (BAP 6th Cir., June 22, 2012)
- The 6th Circuit Bankruptcy Appellate Panel affirmed the bankruptcy court’s judgment refusing to order damages for a violation of the automatic stay and dismissing the claim that the repossession of a car by a lien holder violated the discharge injunction.
- Procedural context:
- This is an appeal from an order of the bankruptcy court for the Eastern District of Kentucky, presenting mixed questions of law and fact reviewed de novo and for clear error respectively. The court found that Appellee violated the automatic stay. The stay did not terminate automatically, and Debtor made efforts sufficient to keep it in effect. No damages were awarded, as Debtor provided no evidence of their value. Appellee did not violate the discharge injunction as it was enforcing in rem rights that survived discharge.
- Debtor financed the total purchase price of a car with Appellee. Two years later, he filed under chapter 7, claiming no exemption amount in the car. He declared his intention to reaffirm the agreement but did not do so. His later motion to redeem the car was granted, but he did not perform within the time limit. He later alleged that the parties had a confidential settlement agreement under which he had started to make payments. He received a discharge on October 10, 2010. Appellee repossessed the car on November 3, 2010. Debtor then sought damages for violation of the discharge injunction and asked the court to set monthly payment amounts for the car.
- Shea-Stonum, McIvor, Preston
In re Edwin Earl Elliott
Summarizing by Bradley Pearce
In re Donald and Jane Nichols
Summarizing by Lars Fuller
3123 in the system
2 Being Processed