![]() The Court also awarded attorneys' fees of $3,125.65. The Court based this amount on the value of the loss of use and enjoyment of the motorcycle, insurance, registration renewal, and lost time from work due to lack of transportation. ![]() Edwards, her husband, and her attorney, the Court entered a judgment against B&E for actual damages of $10,000. The only possible basis for a loan default was the bankruptcy filing, but repossession because of a filing is precisely what the Code prohibits.Īfter considering testimony and evidence from Ms. The kicker was that Edwards was current on her loan, meaning on the petition date, B&E had no reason to repossess the motorcycle. The Court found that B&E deliberately repossessed and kept the motorcycle, even though it had actual notice – from multiple sources – of the bankruptcy. B&E showed disdain for the Code, telling Edwards they intended to violate the automatic stay. It is enough to establish the "willfulness" element of a violation if the Court finds that the creditor has committed an intentional act with knowledge of the automatic stay. A good‑faith mistake is not a valid defense. Section 362 of the Bankruptcy Code allows a debtor to recover actual damages incurred because of a "willful" violation of the automatic stay, including costs, attorneys' fees, and, in appropriate circumstances, punitive damages. B&E ignored the lawsuit and kept the motorcycle, apparently deciding they would ignore the Bankruptcy Code and the Bankruptcy Court.
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