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Because the Bankruptcy Code allows debtors to recover damages from creditors who act in violation of the automatic stay, creditors should proceed with care in order to avoid creating a basis for such relief. ....
Many creditors have been warned of the need to halt collection efforts once they are put on notice that a debtor has filed for bankruptcy. However, the why behind this warning, mainly the automatic stay, is often misunderstood or disregarded. ....