Case Summary:
Debtor sought contempt remedies for violations of the automatic stay and discharge injunction related to the Government’s attempt to satisfy restitution owed by Debtor’s husband with sequestered property, tax refunds, and Debtor’s pension. The district court made determinations about Debtor’s interest in the property and returned to this Court for sanctions. Debtor argued the Government violated the automatic stay and discharge injunction when it sought to collect restitution from Debtor’s interest in property. Further, Debtor seeks sanctions for the Government’s refusal to release a lien on property she owns with her father. The Government contended its argument in district court, that Debtor had no legitimate interest in any of the tax refund or her retirement account, was not a violation of the automatic stay or discharge injunction. Further, the Government asserted its lien on the property at issue was proper. The Court found there was no violation of the automatic stay as to the sequestered property. The Court did find violations of the automatic stay and discharge injunction in the Government’s pursuit of 100% of the tax refunds and 100% of Debtor’s pension. Further, the Court found the Government’s conduct relating to the lien on the property violated the discharge injunction.
Statute/Rule References:
11 U.S.C. § 105 -- Powers of court
11 U.S.C. § 362(a) -- Automatic stay
11 U.S.C. § 362(k)(1) -- Automatic stay violation damages
11 U.S.C. § 524(a) -- Discharge injunction
Key Terms:
Automatic Stay
Contempt
Discharge Injunction
Taggart Standard