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Supreme Court Issues Decisions About Bankruptcy Discharge Violations

In 2019, the Supreme Court issued a unanimous opinion establishing the standard that courts must follow to hold a creditor in civil contempt for violation of a bankruptcy discharge. Arriving at its decision, the Supreme Court rejected both the subjective and strict liability standards. As a result, courts are now permitted to hold a creditor in contempt for violating a discharge order only when there are no fair grounds of doubt as to whether the creditor’s conduct during discharge is lawful. [...]