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From the Editor – Automatic Stay

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By The Honorable William Houston Brown (Retired)

Debtor stated plausible claim for stay violation. The district court applied improper standard in dismissing the Chapter 13 debtor’s action for violation of the stay by foreclosure. The district court found the complaint did not adequately allege that the substitute trustee had notice of the second bankruptcy filing before foreclosure, but the Circuit Court disagreed, with the complaint alleging facts that more than adequately supported adequate notice and injury caused by the violation. The complaint stated a cause of action under § 362(k), with dismissal reversed. Houck . . .

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