This article was originally published in the American Bankruptcy Institute Journal, May 2019.
“Ignorance (of the Law) Is Bliss: Examining Subjective, Unreasonable Good Faith
and the Discharge Injunction”
The U.S. Supreme Court has long recognized that one of the fundamental purposes of bankruptcy is to release honest debtors from oppressive debts.1 Section 524 of the Bankruptcy Code provides for a discharge, designed to “ensure that debtors receive a ‘fresh start’ and are not unfairly coerced into repaying discharged prepetition
debts,”2 and to “eliminate any doubt concerning the effect of the discharge as a total prohibition on debt-collection efforts.” Read more