The above mentioned case came prior to the Court in the defendant’s movement for summary judgment filed on August 1, 2006, in reaction to your debtor-plaintiff’s grievance alleging the creditor-defendant violated the automatic stay [i.e. 11 U.S.C. В§ 362(a)] by cashing the plaintiff’s check after she filed a petition for relief under Chapter 13 for the U.S. Bankruptcy Code. The defendant avers it failed to break the automated stay because regarding the exclusion supplied in 11 U.S.C. В§ 362(b)(11). The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334. The Court heard dental arguments on September 12, 2006 and directed the events to register extra briefs coping with if the check at problem qualified as being an instrument that is negotiable. For the reasons stated below, the Court discovers the motion for summary judgment is born to be ISSUED.
On April 15, 2006, the plaintiff received a “payday loan” for $500.00 through the defendant. In return for the $500.00 loan, the payday loans NE plaintiff provided the defendant a search for $587.50, that was designed to spend the key of this loan plus interest and costs. The defendant consented to support the check until April 29, 2006. May 9, 2006, the debtor-plaintiff filed for Chapter 13 bankruptcy relief. For purposes for this summary judgment, the defendant stipulates it received notice of this plaintiff’s bankruptcy before negotiating her check always. May 16, 2006, the defendant provided the plaintiff’s look for re re payment, however it had been rreturned as a result of funds that are insufficient. Even though the check wasn’t compensated, the plaintiff did incur NSF fees imposed by her bank for issuing a inadequate check. On June 1, 2006, the plaintiff initiated this adversary proceeding for breach associated with stay that is automatic.
Roles regarding the events
The defendant contends that since the check had been a negotiable instrument, depositing and presenting it for re payment had not been a breach associated with automatic stay pursuant towards the exemption supplied in Section 362(b)(11) associated with the Bankruptcy Code.