Looking Beyond Taggart: Is the Contempt Standard for a Stay Violation the Same as for a Discharge Injunction Violation?

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

Background

Last year, the Ninth Circuit in In re Taggart1 ruled that an act in violation of the discharge injunction did not empower a court to find a creditor in contempt, if the creditor believed in good faith that the discharge injunction did not apply—even if the creditor's belief was "unreasonable." The case is pending before the Supreme Court; oral arguments were heard April 24.

Depending on the Supreme Court . . .

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