Case Summary:
Debtors filed motion seeking to hold Farm Service Agency in contempt for purported violation of 11 U.S.C. § 362. They sought an award of damages under § 362(h) for the creditor’s actions in selling certain cattle after the petition was filed. The court initially questioned whether any violation could be considered “willful” when the debtors filed on the morning of an auction and did not provide the creditor with any documentation of the filing beyond their oral statements.
The court did not reach this issue, however, as it concluded the cattle were not property of the debtor’s estate under § 541 at the time the case was filed. The cattle were seized pursuant to a replevin judgment prior to the bankruptcy filing. Accordingly, the debtor’s rights and ownership interests in the cattle were terminated at that time, and the subsequent bankruptcy filing could not resuscitate those rights.
Statue/Rule References:
11 U.S.C. § 362 -- Automatic Stay
11 U.S.C. § 362(h) -- Damages for Willful Stay Violations
11 U.S.C. § 541 -- Property of the Estate
Key Terms:
Automatic Stay
Property of the Estate