In re: Taylor

Dist. Ct. did not err in finding that Bankruptcy Ct. abused its discretion by issuing creditor contempt and damages orders arising out of creditor’s conduct in seeking from state probate court ratification of assignment to creditor of claim against debtor, under circumstances where debtor had previously filed bankruptcy petition and obtained order from Bankruptcy Ct. that enjoined creditor from collecting on any debt by operation of 11 USC section 524(a)(2) and of any bankruptcy plan of reorganization. Creditor’s motion for ratification order in probate court did not violate either statutory injunction or plan injunction issued by Bankruptcy Ct. because ratification motion did not seek to collect, recover, prosecute or satisfy any judgment against debtor. Ct. rejected debtor’s argument that creditor’s ratification motion in probate court was prohibited because it constituted indirect attempt to establish debtor’s personal liability.