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Case Study · Automatic Stay · E.D.N.Y.

The sale was void.

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Petroff Amshen LLP is a New York consumer rights and foreclosure defense law firm, representing homeowners and consumers in state and federal courts since 2008. We are litigators. We do not send letters and hope.

The Result
Damages awarded
$1,635,000
in damages awarded to the homeowner for the stay violation.
Punitive damages
$1,308,000
of it in punitive damages, four times the actual loss.
Sale
Void
The foreclosure sale declared void from the day it happened.
U.S. Bankruptcy Court, E.D.N.Y.·In re Henderson, 2026 WL 74742·Serge F. Petroff, Petroff Amshen LLP
Prior results do not guarantee a similar outcome. Every case turns on its own facts.
The Case

A sale that never counted.

After a homeowner filed for Chapter 13 bankruptcy, the automatic stay under 11 U.S.C. 362 took effect immediately, halting collection and foreclosure activity. One day later, the home was sold at a foreclosure auction for the creditor, Deutsche Bank National Trust Company, as Trustee.

Petroff Amshen, through partner Serge F. Petroff, litigated the violation in the U.S. Bankruptcy Court for the Eastern District of New York. Because the sale happened after the stay took effect, it was void from the start. The court found the violation willful and egregious under section 362(k), restored what had been taken, and awarded the homeowner $1,635,000, including $1,308,000 in punitive damages. An injunction barred post-violation interest.

The sale never should have gone forward. The law said so, and the court enforced it.
The Legal Record · The Automatic Stay

Filing freezes everything.

A bankruptcy filing triggers an automatic stay that stops collection and foreclosure the moment the petition is filed. Anything done in violation of the stay is void, and a court can undo it and award damages.

i
The Automatic Stay
11 U.S.C. 362
The moment a bankruptcy petition is filed, an automatic stay halts collection and foreclosure activity.
ii
One Day Too Late
Timeline
Here the foreclosure auction took place the day after the Chapter 13 filing, inside the stay.
iii
Void From the Start
Void ab initio
Acts that violate the stay have no legal effect, even a completed sale. The court treated the sale as void from the day it happened.
iv
Willful and Egregious
Section 362(k)
When a stay violation is willful, the court can award actual damages, and in egregious cases, punitive damages.
v
Punitive Damages
$1,308,000
The court awarded $1,308,000 in punitive damages, four times the actual loss.
vi
The Record Restored
Relief
Title was restored to the homeowner and an injunction barred post-violation interest.
The sale was void from day one.$1,635,000 awarded.
A bankruptcy filing freezes the clock.
A sale after that can be undone.
Find out.
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In Their Words

What clients have said.

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I could not recommend a better group than Petroff Amshen. If you find yourself in a situation that requires the assistance of attorneys, this is the firm.

Eli Miller / Google
Prior results do not guarantee a similar outcome.
★★★★★

Petroff Amshen has helped us through a difficult process. They were very caring and explained everything as we went through the case.

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★★★★★

An effective firm with a minimum of fuss. When you need attorneys who actually do the work, you need these guys on your side.

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Questions

What people ask before they call.

Q.
What is the automatic stay in bankruptcy?
Under 11 U.S.C. 362, filing a bankruptcy petition triggers an automatic stay that immediately halts most collection and foreclosure activity.
Q.
What happens if a home is sold after a bankruptcy filing?
A sale that violates the automatic stay is generally void and has no legal effect, and a court can undo it. In this matter the court treated the sale as void and awarded damages. Prior results do not guarantee a similar outcome.
Q.
Can a court award punitive damages for a stay violation?
Yes. Under section 362(k), when a violation is willful, a court may award actual damages and, in egregious cases, punitive damages.
Q.
Does Petroff Amshen represent clients outside New York?
No. Petroff Amshen represents clients in New York only.
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  • 05Fee structure is discussed at the consultation.
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