Taggart’s Effect Evident in Eleventh Circuit Ruling on Discharge Violation

According to the rule given by Taggart v. Lorenzen, the Atlanta-based appeals court said the lender could not be cast with sanctions, even if there were a violation of the discharge injunction. The Eleventh Circuit ruled that an informational statement sent by a secured lender regarding a debtor’s discharged personal liability on a mortgage does not violate the discharge injunction in Section 524, even though the same statement may violate the federal Fair Debt Collection Practices Act.

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