(United States Ninth Circuit) - In an Chapter 7 bankruptcy case,the BAP's decision is affirmed on different grounds where the bankruptcy court erred by sanctioning creditors for violating the automatic stay by pursuing civil contempt proceedings against the debtor based on his failure to pay discovery sanctions in a state court action, because civil contempt proceedings are exempted from the automatic stay under the Bankruptcy Code's government regulatory exemption, or 11 U.
S.
C. section 362(b)(4),when, as here, and the contempt proceedings are intended to effectuate the court's public policy interest in deterring litigation misconduct.
Source: findlaw.com