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Belcher et al v. Sallie Mae, Inc. (In re Belcher) (Case No. 06-71448) (A.P. No. 08-07076) 08/19/09

Debtors alleged that Sallie Mae willfully violated the automatic stay by undertaking collection efforts against them following confirmation of their chapter 11 plan. In its answer, Sallie Mae admitted that it continued collection efforts but it denies that it knowingly or willfully violated the automatic stay. The Court granted 90 days for discovery. During discovery, a dispute arose. The matter before the Court then, was a multi-item discovery dispute regarding information sought by the Debtor’s from Sallie Mae. Debtors also sought an extension of time to complete their desired discovery. The Court examined the applicable rules for discovery set forth in the Federal Rules of Civil Procedure as well as the evidence presented by both parties. The Court ordered Sallie Mae to file supplemented responses to the Debtors’ discovery requests within thirty days. The Debtors were granted an additional sixty days following receipt of Sallie Mae’s supplemented responses to complete their desired discovery.

Date: 
Wednesday, August 19, 2009
Category: 
Automatic Stay
Bad Faith
Discovery
Chapter: 
11