Bankruptcy: Great Decision: In re Henry [MUST READ]

Information that should and should not be reported where there is a bankruptcy.
David A. Szwak

Bankruptcy: Great Decision: In re Henry [MUST READ]

Postby David A. Szwak » Tue Oct 25, 2005 8:33 pm

In re Henry,
266 B.R. 457,
Bankr.C.D.Cal., Aug 22, 2001

Chapter 7 debtors brought purported class action against first mortgage holder in district court, which referred several issues to the bankruptcy court for determination. The Bankruptcy Court, Samuel L. Bufford, J., held that: (1) first mortgage holder's collection activities violated the automatic stay; (2) first mortgage holder's collection activities violated the discharge injunction; (3) debtors did not violate bankruptcy law by retaining their house and making payments on the secured debt without reaffirming the debt; (4) collection actions taken by first mortgage holder after date on which it learned that debtors had filed a bankruptcy petition were "willful," for contempt purposes; (5) debtors were entitled to compensatory damages of $6,570, plus interest, reflecting payments made to first mortgage holder during the automatic stay and after the discharge injunction took effect; (6) debtors were entitled to recover their costs and reasonable attorney fees; and (7) debtors were awarded punitive damages in the amount of $65,700.
Ordered accordingly

Fact that credit report containing information about Chapter 7 debtors' bankruptcy filing was likely received by creditor's sales department, and not by its collections department, did not excuse creditor's subsequent stay violations.

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