In re Arnold (Case No. 23-61057) 08/26/2024
In this case, the Chapter 7 Debtor filed a motion to impose sanctions against a creditor alleging that the creditor violated the automatic stay and the discharge injunction by making 50 or more collection calls to the Debtor and his family members. The Debtor failed to redeem the collateral or enter into a reaffirmation agreement regarding the vehicle, so the Court found that the timing of the creditor’s action in the case was more appropriately governed by the discharge injunction than the automatic stay. The Court held that the Debtor failed to meet his burden of proof that the creditor violated the discharge injunction as the evidence showed that the creditor was not trying to coerce the Debtor to make a payment he did not want to make or attempting to collect a debt from the Debtor as a personal liability, but instead was calling when the payments were either due or late to determine if the Debtor wanted to perform under his contract to stave off repossession. Therefore, the Court denied the motion with a word of caution to the creditor that there comes a point where the sheer volume of calls tips a legitimate inquiry as to intent into coercive behavior.