Court Awarded No Damages to Debtor for Willful Stay Violation Since Debtor Failed to Mitigate Damages

Court Awarded No Damages to Debtor for Willful Stay Violation Since Debtor Failed to Mitigate Damages

Defendant asserted a claim against Debtor based on Debtor’s guaranty of lease agreement between Defendant as landlord and Debtor’s corporation. Debtor did not list this claim in his Chapter 13 schedules, and the Defendant filed a post-petition lawsuit against Debtor in state court for breach of lease.

After the Debtor filed a Suggestion of Bankruptcy in the state court case, Defendant filed a Motion for Summary Judgment and obtained a Judgment against the Debtor.

The Debtor filed an adversary proceeding against Defendant seeking  a determination (1)  that the debt claimed by the Defendant was discharged in his Chapter 13 case and (2) an award of damages based on Defendant’s violation of the automatic stay.

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