Houch v. Substitute Trustee Services Inc. (In re Houck), ___BR___(Bankr. W.D.N.C. Oct. 6, 2020) case #15-5028

By Los Angeles Bankruptcy Attorney on October 7, 2020

Unrepentant Lender Slammed with $260,000 in Damages for an ‘Egregious’ Stay Violation

Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.

For an egregious violation of the automatic stay that “severely injured” the debtor, Chief Bankruptcy Judge Laura T. Beyer of Charlotte, N.C., imposed $260,000 in sanctions, given that the lender’s “behavior displayed a high degree of reprehensibility.”