Rule 3002.1 Does Not Justify Punitive Sanctions

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN)

In order for a bankruptcy court to impose sanctions for contempt, Taggart compelsa finding of a violation of a clear and unambiguous order; the bankruptcy court lacks inherent power to issue punitive sanctions under Rule 3002.1. (Jacobs) PHH Mortgage Corporation v. Sensenich, 6 F.4th 503 (2nd Cir. August 2, 2021)

Case Summary

Bankruptcy Judge Colleen Brown had seen repeated violations of Rule 3002.1 and a mortgage servicer taking actions contrary to the finding that mortgages were current. The Court found . . .

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