Sunday, March 1, 2015

Creditor Lacks Standing to Bring Automatic Stay Claim, Bankruptcy Panel Rules


On Friday, the Ninth Circuit Bankruptcy Appellate Panel affirmed an order denying a creditor's claim for damages resulting from an automatic stay violation.



The case, In re Yan, involved a creditor who sought fee reimbursement and punitive damages against a consumer who previously filed bankruptcy.

The bankruptcy judge determined that the consumer had willfully violated the automatic stay by suing the creditor in state court.

However, the creditor's motion was ultimately denied because the judge determined the creditor lacked standing to bring a claim under the automatic stay.

On appeal, the panel agreed with the bankruptcy judge that the creditor lacked standing to sue the debtor. 


The panel recognized that Congress intended the automatic stay to protect debtors and trustees, not creditors. The panel was also persuaded by the fact that the creditor's claim had already been paid in full by the trustee. 

The panel also ruled that the bankruptcy judge had no inherent authority to sanction the debtor for conduct that took place in state court.

4 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Hi there! This is my first visit to your blog! We are a collection of volunteers and starting a new project in a community in the same niche. Your blog provided us valuable information to work on. You have done a outstanding job!notebook corporate gift

    ReplyDelete
  3. amazing things here. I am very happy to see your post. Thanks a lot and i am having a look forward to contact you. Will you please drop me a e-mail?dc drive

    ReplyDelete
  4. Greetings! Quick question that's completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iphone. I'm trying to find a template or plugin that might be able to resolve this problem. If you have any recommendations, please share. Many thanks!moneylender Singapore

    ReplyDelete