The state tax department’s error in garnishing $193 from the account of a debtor who declared bankruptcy will cost it $13,625 in legal fees.

Northern District Bankruptcy Judge Margaret Cangilos-Ruiz (See Profile) had previously found the state Department of Taxation and Finance willfully violated the “automatic stay,” which kicks in as soon as a bankruptcy petition is filed and halts all collection efforts (NYLJ, Nov. 12, 2013). In her latest decision the judge awarded the debtors’ counsel fees but declined to award damages for emotional stress.

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