Nickles Motors Acceptance Corporation ("NMAC") has a judgment against Markell for $10,000 and, in an effort to satisfy the judgment, serves a writ of garnishment on Markell's employer. Unbeknownst to NMAC, two days earlier Markell had filed a petition. Is Markell entitled to damages under section 362(k)(1)? How about if, after being advised of the filing by Markell's attorney, NMAC refuses to release the garnishment? Does it matter if NMAC, though informed of Markell's bankruptcy filing, is ignorant of the automatic stay in bankruptcy and did not intend to violate its provisions? Does it matter if the debtor was Markell, Inc., a small business corporation wholly owned by Markell, rather than Markell the human being?

Answer rating: 100% (QA)

Under section 362k1 of the Bankruptcy Code a debtor may be entitled to damages for willful violation ... View the full answer