Taggart v. Lorenzen: Supreme Court Stakes Out Middle Ground on Contempt Standard for Discharge Injunction Violations, Leaves Clues About Automatic Stay Violations

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

Introduction – The Taggart Ruling

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 has now been decided by the . . .

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