© 2017 by Curran Antonelli

Disclaimer

Supreme Court Hears Arguments on Post-Bankruptcy Debt Collection Penalties

May 22, 2019

On April 24, 2019, the Supreme Court heard arguments on whether creditors may be penalized for their good faith attempts to collect post-bankruptcy debt in the case Taggart v. Lorenzen. The case concerns a real estate developer who relied on approval by a state court to collect attorneys’ fees post-bankruptcy. The petitioner, Taggart, who was granted a bankruptcy discharge, sought to hold the creditors in contempt for violating the discharge.

 

This case is unusual because although it arises out of a dispute that began in bankruptcy, the issues do not involve particular provisions of the Bankruptcy Code or federal law, but instead analyzes the federal common law of contempt. Until now, the Supreme Court has not analyzed the state of mind required to find a creditor to be held in contempt of a bankruptcy discharge.

 

 

Supreme Court to Weigh Debt Collection Penalties Post-Bankruptcy

 

Taggart v. Lorenzen

 

Curran Antonelli represents a broad range of businesses and corporate entities, private equity funds, as well as governmental agencies and other interested parties in all phases of the bankruptcy process and in bankruptcy related transactions and litigation.  As advocates and trusted business advisors, our well-established foundation of knowledge and understanding of our clients’ business interests, enables our attorneys to deliver unparalleled individualized attention to our clients of all sizes with their litigation and corporate transactional needs.

Share on Facebook
Share on Twitter
Please reload