Mobley 2007 WL 5037682 (Bankr.M.D.Fla.)

Debtor Protections - Sanctions of $2,000.00 would be imposed upon litigants for their violation of the automatic stay.

A Florida bankruptcy court has imposed sanctions of $2,000.00 upon an attorney and his clients who violated the automatic stay by filing a third- party complaint against the Chapter 7 debtor in state court and then, though twice asked by the debtor's counsel to dismiss the complaint, failed to do so. Although the invoice submitted by the debtor's counsel sought fees in the amount of $4,637.50, representing 13.25 hours of work, the court declined to award compensation for research regarding the discharge of a contingent claim which was not involved in the matter currently before the court, as well as for several miscellaneous items listed by the debtor's counsel.

Tanna LaTisha Suggs, Debtor. Tanna LaTisha Suggs, Plaintiff-Appellant v. Regency Financial Corp., Defendant-Appellee. Case No. 06-6077

Western District's Local Rule 4070-1.D, allowing creditors to repossess uninsured vehicles in Chapter 13 cases without first filing a motion for relief from stay, is found invalid.

Date of decision: 9/12/07

Full opinion here.