The creditor’s equitable recoupment of an overpayment of retirement benefits from the debtor’s ongoing monthly benefit payments did not violate the automatic stay. Williamson v. PARS, No. 17-1375 (B.A.P. 9th, Oct. 10, 2018) (unpublished).
The Public Agency Retirement System (PARS) erroneously calculated Barbra Williamson’s entitlement to supplemental retirement benefits by listing her yearly salary as monthly. When it discovered the mistake, PARS offset Ms. Williamson’s retirement benefit overpayment by withholding from the ongoing monthly payments to which she was entitled. Ms. Williamson filed for chapter 13 bankruptcy and sought sanctions against PARS for violation of the automatic stay. The bankruptcy court found no violation and denied the motion. Read More
