Bankruptcy Court found violation of automatic stay to be “technical”, thus no damages. Ninth Circuit BAP did not agree. Continuing to pursue state court fraudulent transfer action after transfer or filed for Chapter 7 relief violated the automatic stay; even if the violation of the stay is “technical”, damages, including attorneys’ fees and costs, should be assessed against the violator....
Critical Case Comment
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By Academy Staff
When a Chapter 13 case is dismissed after confirmation, funds on hand with the Trustee as of the time of dismissal must be returned to the Debtor and cannot be used to pay administrative expenses or claims of creditors. In re Bateson, 2016 WL 3475613 (Bankr. E.D. Mi. 2016).
Case Summary
Ms. Bateson (the “Debtor”) filed for relief under Chapter 13 in August, 2013. In January, 2014, Debtor filed her First Modified Pre-confirmation Chapter 13 Plan. The Plan called for 60 monthly payments of $8,500.75 per month . . .
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