Trailer v. Troy University, 12-03117

Trailer filed a chapter 7 petition on July 5, 2012, listing Troy as an unsecured creditor.
Troy was notified of the bankruptcy; Trailer received a nondischargeable Stafford student loan funded through Kentucky Higher Education Authority, not Troy.
Trailer requested an official transcript and offered to pay the ordinary fees; Troy refused due to prepetition debt.
This matter concerns whether Troy, with knowledge of the bankruptcy, willfully violated the automatic stay by withholding the transcript to collect a prepetition debt.
The automatic stay bars acts to collect a prepetition claim; the stay remains in effect until case closure, dismissal, or discharge is granted or denied.
The court found Troy willfully violated the stay, ordered transcript provision upon payment of fees, and denied actual damages beyond attorney fees.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Troy knowingly and willfully violated the automatic stay by withholding the transcript.	Trailer asserts Troy knew of the bankruptcy and acted to pressure payment by withholding the transcript.	Troy argues no improper motive or knowledge to violate the stay is shown.	Yes; Troy willfully violated the stay.

Jove Eng’g, Inc. v. Internal Revenue Service, 92 F.3d 1539 (11th Cir. 1996) (willfulness requires intentional action with at least indifference to consequences)
In re Bloom, 875 F.2d 224 (9th Cir. 1989) (standard for willful stay violation in the circuit)
Mitchell Const. Co., Inc. v. Smith, 180 B.R. 311 (Bankr. N.D. Ga. 1995) (debtor's stay violations require refraining after notice)
Andrews Univ. v. Merchant, 958 F.2d 738 (6th Cir. 1992) (educational loans are not exceptions to the automatic stay)
In re Gustafson, 111 B.R. 282 (9th Cir. BAP 1990) (university stayed from withholding debtor’s transcript)
In re Walker, 336 B.R. 534 (Bankr. M.D. Fla. 2005) (stay violations considerations in withholding records)
In re Parham, 56 B.R. 531 (Bankr. E.D. Va. 1986) (premise of stay violations and debtor protections)
In re Reese, 38 B.R. 681 (Bankr. N.D. Ga. 1984) (early stay violation discussions in bankruptcy)
In re Ware, 9 B.R. 24 (Bankr. W.D. Mo. 1981) (stay violation considerations on record withholding)
In re Heath, 3 B.R. 351 (Bankr. N.D. Ill. 1980) (case law on stay penalties context)
In re Howren, 10 B.R. 303 (Bankr. D. Kan. 1980) (early authorities on willful stay violations)