From the Editor - Automatic Stay • NACTT Academy

From the Editor – Automatic Stay

By The Honorable William Houston Brown (Retired)

Creditor violated stay by serving debtor with state suit at meeting of creditors. When the Chapter 7 debtor appeared for the meeting of creditors, a creditor served the debtor with summons and complaint filed in state court, for a cause of action filed postpetition but related to prepetition debt. Finding that the creditor willfully violated the stay by initiating the suit, serving the debtor and then refusing to discontinue the state suit, the debtor was entitled to attorney fees as actual damages. In re Leiba, 529 B . . .

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