Research Example: Automatic Stay Violations in Bankruptcy Cases
Here’s a mock research assignment showing how Midpage helps bankruptcy attorneys quickly uncover authority on a creditor’s duty to return repossessed collateral after a debtor files bankruptcy.
The scenario
Your client, a Tennessee debtor, filed a Chapter 7 bankruptcy after her car had been repossessed a few days before. She immediately notified the creditor of the filing and requested the vehicle’s return.
Despite that notice, the creditor refused to release the car and a few weeks later, sold it at auction without obtaining relief from the automatic stay.
You need to determine whether the creditor’s refusal to return the vehicle and subsequent sale violated the automatic stay under 11 U.S.C. § 362, and what remedies might be available for your client.
Step 1: Start with a proposition search
Rather than searching general keywords like “repossession after bankruptcy,” you start with a direct proposition:
This type of search targets judicial statements of law, not just cases where “automatic stay” or “repossession” happens to appear.
The first result is a 6th Circuit bankruptcy case where the court found the creditor did not willfully violate the stay because it promptly returned the vehicle after verifying the bankruptcy filing.
That decision gives you helpful context, courts expect prompt return once notified, but it doesn’t fully match your fact pattern. In your case, the creditor never returned the vehicle and in fact sold it post-petition, which suggests a much more serious violation.
Step 2: Narrow with a yes/no question
To focus only on cases where courts found a willful violation and awarded damages, you add the following yes/no question:
“Did the court hold that the creditor willfully violated the automatic stay and awarded damages?”
Filtering to Yes instantly narrows your results to cases where creditors willfully refused to return collateral or selling it post-petition despite having notice of the bankruptcy.
Your table now highlights a handful of decisions where courts imposed damages for clear violations of the automatic stay, making it easy to identify the most relevant authority for your case.
Step 3: Zero in on a key case
One case stands out: In re Susan A. Addleman.
In Addleman, the creditor repossessed the debtor’s vehicle before she filed for bankruptcy. After receiving notice of the Chapter 7 petition, the creditor refused to return the car and later sold it without seeking relief from the stay.
The court held this was a willful violation of the automatic stay, emphasizing that once notified of the bankruptcy, a creditor has an affirmative duty to return estate property and seek court approval before taking further action.
The court awarded the debtor $18,603 in actual damages and $25,000 in punitive damages, underscoring the seriousness of ignoring the stay and disposing of a debtor’s property post-petition.
This case is highly relevant to any question concerning a creditor’s duty to return repossessed collateral and the consequences of noncompliance under § 362(k).
Step 4: Build the argument quickly
Within minutes, you’ve used Midpage to:
Identify controlling 6th Circuit precedent confirming that creditors must promptly return repossessed collateral upon notice of a bankruptcy filing.
Distinguish between cases where prompt return avoids liability and cases where refusal leads to damages.
Locate authority awarding both actual and punitive damages for willful stay violations.
Surface key judicial language outlining a creditor’s affirmative duty to restore property to the estate.
From here, you could save the Addleman decision and related cases into a Notebook and use Chat with Notebook to compare reasoning, pull direct quotes, and draft your Motion for Sanctions or Adversary Proceeding, all without switching between databases or wading through irrelevant cases.
The takeaway
Midpage helps bankruptcy attorneys move from fact pattern to authority in minutes.
By starting with a precise proposition, filtering with a yes/no question, and zeroing in on key cases like In re Addleman, you can quickly determine how courts interpret a creditor’s post-petition obligations and build a compelling argument for damages when those obligations are ignored.
Whether you’re defending a debtor’s rights or advising a creditor on compliance, Midpage gives you the clarity and speed to research with confidence.