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Violation of Automatic Stay

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    Violation of Automatic Stay

    Does anyone here have experience with a successful claim of a violation of the automatic stay?

    I have an interesting situation where a creditor actually acknowledged that they violated the automatic stay (on accident - legal not talking with accounts payable).

    They agreed to sanctions almost immediately upon suggestion by my attorney! I was really impressed with the way my attorney handled the entire situation, and was surprised that the creditor attorney settled so quickly. My guess is that the sanction amount we asked for was relatively minimal (under $1,000) that it would have cost them more in attorney time/fees to fight something that was an obvious violation.

    So now my question... Does the sanction amount go to me or does it go straight to the trustee since the trustee is now in control of my financial house? My attorney is researching this now, but was curious if I could hope to see any of this $$ or does it just go to the trustee (and attorney for his reasonable fees... )

    #2
    If its a sanction, it goes to the court. (like a fee)

    If there were "damages", that would go to you (and then to the trustee).

    If there were "attorneys fees" awarded, that would go to your attorney.

    Comment


      #3
      HHM - Thanks. Yeah, I misspoke when I said sanction. Should have said damages.

      Looks like my trustee will be getting a couple extra hundred dollars...

      Kinda takes some of the fun out of getting a creditor to admit to the violation!

      Comment


        #4
        To be fair, I am not 100% sure that damages will go to the trustee...but in a 13, I believe that is what will probably happen.

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          #5
          [QUOTE=NoTomatoCan;407498]Does anyone here have experience with a successful claim of a violation of the automatic stay?

          I have an interesting situation where a creditor actually acknowledged that they violated the automatic stay (on accident - legal not talking with accounts payable). [QUOTE]

          I'm curious. What did they do?
          Filed Chapter 13 on 3-31-10. 341 completed 5/20/10
          $2900+ a month 0% payback to unsecured creditors
          Discharged 6/30/2015

          Comment

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