Roth v. Nationstar Mortgage, LLC, No. 17-11444 (11th Cir. 2019)
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The Eleventh Circuit affirmed the bankruptcy court's denial of debtor's second motion for sanctions against Nationstar. Debtor alleged that Nationstar's conduct of sending a monthly statement to Roth to collect discharged mortgage debt was in violation of the bankruptcy code.
The court held that the Informational Statement sent by Nationstar was not an improper attempt at debt collection in violation of 11 U.S.C. 524(a)(2), because there were several bases to conclude that the objective effect of the statement was not to pressure debtor to repay a discharged debt. Therefore, sanctions were not appropriate under 11 U.S.C. 105. The court noted that, even if there was a section 524 violation, sanctions under section 105 were unavailable under the Supreme Court's recent decision in Taggart v. Lorenzen, 139 S. Ct. 1795, 1801 (2019), because there was more than a fair ground of doubt as to whether the discharge order barred Nationstar's conduct. Finally, the court held that the bankruptcy court did not err by failing to hold an evidentiary hearing.
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