Is a Finding of Contempt Precluded by a "Good Faith" but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction? • NACTT Academy

Is a Finding of Contempt Precluded by a “Good Faith” but Unreasonable Belief that an Action Does Not Violate the Discharge Injunction?

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)

Background

[W]here ignorance is bliss,
'Tis folly to be wise.1

In recent weeks, the circuits have been on a collision course, which may head for the Supreme Court, on the issue of whether an act in violation of the discharge injunction allows a court to find a creditor in contempt, if the creditor believed in good faith that the discharge injunction did not apply and even if the creditor's belief . . .

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