Go home, debtor.

October 27, 2019

In a case about whether a debtor’s discharge order could be enforced in a district other than the one that entered the order – a difficult question generating much analysis over the years – the Fifth Circuit “adopt[s] the language of the Second Circuit that returning to the issuing bankruptcy court to enforce an injunction is required at least in order to up hold ‘respect for judicial process.’  The bankruptcy court erred in holding that it could address contempt for violations of injunctions arising from discharges by bankruptcy courts in other districts. Therefore, as to . . . those debtors whose discharges were entered by courts in other districts, the bankruptcy court in these proceedings has no authority to enforce the resulting injunction.” Crocker v. Navient Solutions LLC, No. 18-20254 (Oct. 21, 2019) (citation omitted). This holding was fatal to an effort to bring a class action about the alleged mishandling of a type of student-loan debt.

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