Credit Nation Lending Services, LLC v. Nettles, 489 B.R. 239 (2013)
Mar 25, 2013OUTCOME: Judgment Affirmed
Background: Chapter 13 debtors brought adversary proceeding to enforce stay by requiring creditor to return motor vehicle that it repossessed postpetition. The Bankruptcy Court entered turnover orde ... r and awarded damages, and creditor appealed. Holdings: The District Court, Sharon Lovelace Blackburn, Chief Judge, held that: [1] debtors presented sufficient proof of damages from stay violations, in form of attorney fees; [2] creditor's stay violations, in repossessing motor vehicle with knowledge of debtors' bankruptcy filing and then refusing to restore status quo ante, were particularly egregious, and supported punitive award; and [3] as punitive award, bankruptcy court could enter order discharging debtors' $6,127.54 debt to creditor and canceling its security interest in vehicle.
