a. What is the goal of the automatic stay?
b. How did Dan Holiday Furniture violate the automatic stay provisions?
c. But didn't Frank Jackson say he wanted to continue paying the store?
d. The court awarded punitive damages to Jackson-would a court do that anytime a creditor violates the automatic stay?
Cora and Frank Jackson purchased a recliner chair on credit from Dan Holiday Furniture. They made payments for seven months until November, when they filed for bankruptcy protection.
Although the store knew about the bankruptcy filing, a collector called the Jacksons' house ten times between November 15 and December 1 and left a card in their door threatening repossession of the chair. On Dec 1, Frank went to Dan Holiday to pay the $230.00 owed for November and December. He told the store about the bankruptcy filing, but allegedly added that he and his wife wanted to continue making payments directly to Dan Holiday.
In early January, Dan Holiday employees learned that Frank had died the month before. Nonetheless, collectors telephoned Cora Jackson 26 times between January 14 and February 19. The store owner's sister left the following message on Cora's answering machine:
Hello. This is Judy over at Dan Holiday Furniture. And this is the last time I am going to call you. If you do not call me I will be at your house. And I expect you to call me today. If there is a problem I need to speak to you about it. You need to call me. We need to get this thing going. You are a January and February payment behind. And if you think you are going to get away with it, you've got another thing coming.
When Cora returned home on February 18, she found seven bright yellow slips of paper in her door jamb stating that a Dan Holiday truck had stopped by to repossess her furniture. The threat to send a truck was merely a ruse designed to frighten Cora into paying. In fact, the store did not want the furniture back. What they wanted was to talk directly to her about making payments. The store also sent Cora a letter threatening repossession and legal action. Cora's bankruptcy attorney then contacted the store and all collection activity ceased.