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Carlos J. Cuevas Carlos J. Cuevas

An important consumer bankruptcy law issue percolating through the lower federal courts concerns the issuance of emotional distress damages for a willful violation of the automatic stay. The issue of emotional distress damages merits discussion because an egregious willful violation of the automatic stay can leave a debtor traumatized. Consequently, pursuant to Bankruptcy Code §362(k)(1), in order to properly compensate a debtor for the damages that he or she has suffered, a creditor should be compelled to pay a debtor for emotional distress damages.

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