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Creditor Who Refuses to Repay Overpayment from Trustee Violates Code

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In re Alston, __ B.R. __, 2019 WL 7580136 (Bankr. D.S.C. 2019)

Debtor’s Ch. 13 Plan paid Santander Consumer USA, Inc.’s, claim in full through the Ch. 13 plan. The Ch. 13 Trustee overpaid Santander by $1,815.61. Santander refused to return the overpayment. The Debtor’s counsel sought a refund of the overpayment as well as an award of attorney’s fees and sanctions against Santander.  The Court held that Santander willfully violated the terms of the debtors’ confirmed plan and as a remedy, it directed Santander to refund the overpayment and awarded reasonable attorney’s fees and costs in the amount of $3,807.90.

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