News & Analysis as of

Creditors Bankruptcy Appellate Panel (BAP)

Goldberg Segalla

Debtor’s Injunction Language to Bar Future Claimants with Latent Injuries Deemed Unenforceable on Appeal

Goldberg Segalla on

Court: United States Bankruptcy Appellate Panel for the Ninth Circuit - Debtor Ben Nye Co. Inc., a manufacturer and distributer of theatrical makeup, filed for subchapter V bankruptcy in March 2024. Its proposed bar date...more

Pillsbury Winthrop Shaw Pittman LLP

When It Counts: Fully Secured and Paid-Off Creditors Can Count as Petitioning Creditors for Involuntary Bankruptcy Petitions

In a recent pair of decisions, the Ninth Circuit Bankruptcy Appellate Panel held that even fully secured creditors with nonrecourse claims and unsecured creditors who are paid off after the involuntary petition may qualify as...more

Miller Nash LLP

Supreme Court Limits the Ability to Discharge Debts Obtained by Fraud

Miller Nash LLP on

The discharge provided in bankruptcy is fundamental, allowing the “honest but unfortunate” debtor a fresh start. There are various exceptions to the discharge found in Sections 523 and 727 of the Bankruptcy Code—designed to...more

Pillsbury Winthrop Shaw Pittman LLP

Profit Motive? Not Required for Subchapter V Eligibility

The Ninth Circuit BAP explains that “commercial or business activities” that satisfy section 1182(1)(A)’s Subchapter V eligibility requirement “would include not-for-profit businesses, and would not be limited to those having...more

Jones Day

Oversecured Creditor's Right to Contractual Default-Rate Interest Allowed Under State Law

Jones Day on

It is generally well understood that an "oversecured" creditor is entitled to interest and, to the extent provided for under a loan agreement, related fees and charges as part of its secured claim in a bankruptcy case....more

Jones Day

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

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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

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

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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