Violation of the Stay: Motion or Adversary?

By Diana Bradford

When must an action for violation of the automatic stay be brought as an adversary proceeding and when is it okay to bring simply via a motion? There is no bright line rule.1 Prior to the 1984 legislation, there was no “private right of action” found in the Bankruptcy Code.2 Violations of the automatic stay, acting as an injunction, were brought as civil contempt actions under 28 U.S.C. § 1481.3 With the addition of 11 U.S.C. § 362 . . .

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