Deducting a discharged loan to a child from her inheritance didn’t violate the discharge injunction.
The BAP decision may have a hint that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
In dicta, the Ninth Circuit BAP says that equitable estoppel cannot be applied against a debtor in view of the debtor’s fiduciary responsibilities.
Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.
Stay modification is required even if the creditor wants to intervene in state court to help the bankrupt estate.
The Ninth Circuit B.A.P. says that the automatic stay does not require dismissal of prepetition lawsuits against debtors.
The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.
Dec 2021
Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.