News & Analysis as of

Taggart v Lorenzen

Bradley Arant Boult Cummings LLP

No Nationwide Class Action for Violation of the Bankruptcy Discharge Injunction

The Second Circuit’s recent decision in Bruce v. Citigroup, Inc., 2023 WL 4919496, at *1 (2nd Cir. Aug 2, 2023) appears to be the second Circuit Court of Appeals (joining the Fifth Circuit) to specifically hold that a...more

Ward and Smith, P.A.

"My Lawyer Made Me Do It" is Not an Absolute Defense to Bankruptcy Court Sanctions

Ward and Smith, P.A. on

Last year, we offered a lesson and a moral from a North Carolina district court decision reversing a $115,000 sanctions order by a North Carolina bankruptcy court.  The lesson from the case was that the bankruptcy court...more

Ward and Smith, P.A.

Use Clarity to Avoid Contempt in Bankruptcy

Ward and Smith, P.A. on

This is a story about contempt and clarity - It comes to us from a July 2021 North Carolina district court decision reversing a $115,000 sanctions order by a North Carolina bankruptcy court. The story offers a lesson and...more

Jones Day

Post-Taggart, Ninth Circuit BAP Holds That "No Fair Ground of Doubt" Standard Applies to Automatic Stay Violations

Jones Day on

In Taggart v. Lorenzen, 139 S. Ct. 1795 (June 3, 2019), the U.S. Supreme Court ruled that a bankruptcy court may hold a creditor in civil contempt for attempting to collect on a debt that has been discharged in bankruptcy "if...more

BCLP

Taggart v. Lorenzen, The State Of Bankruptcy Contempt Power Eight Months Later

BCLP on

So you (allegedly) violated a bankruptcy court order. Whether the debtor alleges you violated the terms of a confirmed plan, failed to provide certain notices required by the bankruptcy rules, violated the discharge...more

Farrell Fritz, P.C.

To Be (Held in Contempt) or Not To Be? That Is the (Bankruptcy) Question

Farrell Fritz, P.C. on

Recently, the United States Supreme Court in Taggart v. Lorenzen set the legal standard that should be followed by bankruptcy courts when determining whether to hold a creditor in civil contempt for attempting to collect a...more

Rumberger | Kirk

The Supreme Court Hands Down a New Standard for Bankruptcy Discharge Violations

Rumberger | Kirk on

On June 3, 2019, Justice Breyer delivered a unanimous opinion of the Supreme Court conclusively establishing the standard courts must apply to hold a creditor in civil contempt for violation of a bankruptcy discharge order....more

Jones Day

Business Restructuring Review July-August 2019

Jones Day on

In This Issue: Washington District Court Overturns Approval of Third-Party Releases in a Settlement Agreement and Related Free-and-Clear Sale - In In re Fraser’s Boiler Serv., Inc., 2019 WL 1099713 (D. Wash. Mar. 18,...more

Jones Day

From the Top in Brief - August 2019

Jones Day on

On June 3, 2019, the U.S. Supreme Court ruled in Taggart v. Lorenzen, 139 S. Ct. 1795 (2019), that a bankruptcy court may hold a creditor in civil contempt for attempting to collect on a debt that has been discharged in...more

Hinshaw & Culbertson LLP

Creditors Beware: Collection of Debt Based on Unreasonable Belief/Understanding That the Debt Was Not Discharged in Bankruptcy...

In Taggart v. Lorenzen, the U.S. Supreme Court reviewed the 9th Circuit Court of Appeals' Order, which affirmed the Bankruptcy Appellate Panel's Order vacating civil contempt sanctions against Bradley Taggart's ("Bradley")...more

Fox Rothschild LLP

United States Supreme Court Holds That An “Objective Analysis” Applies To Determine Whether Civil Contempt Is Appropriate For A...

Fox Rothschild LLP on

The United States Supreme Court granted certiorari to determine the applicable legal standard for holding a creditor in civil contempt when a creditor attempts to collect a debt that falls within an issued bankruptcy...more

Fox Rothschild LLP

Discharge Injunction Violations – Ignorance And Good Faith Are NOT A Defense

Fox Rothschild LLP on

In the recent decision of Taggart v. Lorenzen, the Supreme Court held that a court may hold a creditor in civil contempt for violating a discharge order if there is no fair ground of doubt as to whether the order barred the...more

Ward and Smith, P.A.

Supreme Court Sets Standard for Bankruptcy Discharge Violations

Ward and Smith, P.A. on

When your customer is in bankruptcy, there are two major no-nos that you must remember. First, don't violate the automatic stay, which prevents a creditor from attempting to collect a debt while the debtor is in bankruptcy...more

Ballard Spahr LLP

SCOTUS Adopts "No Fair Ground of Doubt" Standard for Violations of Bankruptcy Discharge Order

Ballard Spahr LLP on

In a unanimous decision, the U.S. Supreme Court ruled recently in Taggart v. Lorenzen that a creditor in a bankruptcy case may be held in civil contempt, and subject to sanction, where there is "no fair ground of doubt" about...more

Patterson Belknap Webb & Tyler LLP

Supreme Court Decides Civil Contempt Standard for Violations of Discharge Orders

Successful bankruptcy cases typically end with a court order releasing a debtor from liability for most pre-bankruptcy debts. This order, generally known as a “discharge order,” prohibits the debtor’s creditors from trying to...more

Bradley Arant Boult Cummings LLP

Where a “Fair Ground of Doubt” Can Create Comfort: Taggart v. Lorenzen

In a unanimous, and perhaps unsurprising, decision, the Supreme Court determined that a creditor may be held in civil contempt for violating the discharge injunction if there is “no fair ground of doubt” as to whether the...more

McCarter & English, LLP

Creditors May Be Held In Contempt For Violating A Bankruptcy Discharge Order If There Is “No Fair Ground Of Doubt”

The U.S. Supreme Court has established an objective standard for determining whether a creditor should be held in civil contempt when the creditor attempts to collect a debt subject to a bankruptcy discharge order....more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides Taggart v. Lorenzen

On June 3, 2019, the Supreme Court decided Taggart v. Lorenzen, No. 18-489, holding that a court may hold a creditor in civil contempt for violating a bankruptcy court’s discharge order as long as there is “no fair ground of...more

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