In re Richard J. Klarchek

10 B 44866

The debtor moved for sanctions against TCF Bank pursuant to section 362(k) of the Bankruptcy Code, alleging that after he filed his bankruptcy petition, TCF willfully violated the automatic stay by proceeding with a state court lawsuit filed against him and other parties. The sole issue addressed by the Court was whether the debtor has standing to pursue the sanctions motion. The Court found that because the debtor’s claim for damages in the sanctions motion is property of his bankruptcy estate and has not been abandoned by the chapter 7 trustee, the trustee is the real party in interest with standing to pursue the cause of action against TCF. Accordingly, the Court denied the motion for sanctions due to the debtor’s lack of standing.

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Wednesday, January 30, 2013