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Standard for Sanctions for Violating Discharge

    By

Taggart v. Lorenzen, 139 S. Ct. 1795 (2019):

The Supreme Court was asked to decide the standard to applied to determine whether or not a Court may impose sanctions for conduct that violates the discharge injunction.  The Supreme Court rejected both a subjective standard (preferred by the creditor) and strict liability (preferred by the debtor). The Court instead held that sanctions are appropriate “where there is not a ‘fair ground of doubt’ as to whether the creditor’s conduct might be lawful under the discharge order.”