The debtors filed a complaint seeking sanctions for violation of the automatic stay by Taxing Authority Consulting Services, Inc. and the County of Louisa, Virginia.  A consent order was entered dismissing the complaint as against the County of Louisa, but TACS opposed the complaint.  After the debtors filed for bankruptcy, TACS filed a proof of claim in the case on behalf of Louisa County.  About two months later, TACS sent a collection letter to the plaintiffs attempting to collect the taxes, and the female debtor informed it she had filed a bankruptcy petition.  After this phone call, TACS made no further attempt to communicate with the debtors.

            Twice a year TACS received delinquent accounts from the County of Louisa with those taxpayers who have filed a bankruptcy petition flagged; the debtors were not flagged in the communication, which the Court found not to be the fault of TACS.  Further, TACS ceased collection efforts after being informed.  The Court found that TACS did not willfully violate the stay and that the debtors incurred no damages as a result of the collection letter other than attorney’s fees which were incurred well after TACS ceased such violation.  The Court declined to award any attorney’s fees because the attorney and debtors had a duty to mitigate damages and the problem could have been resolved by a two minute phone call instead of a complaint.