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The lender’s failure to demand reaffirmation before discharge in chapter 7 barred enforcement of a default based on the filing of bankruptcy.
The Nevada Supreme Court correctly unpacked the confusing notions of bankruptcy jurisdiction and the division of authority between district and bankruptcy courts.
The Supreme Court’s Midland Funding opinion was no defense to invocation of a Nevada statute shifting fees and compelling the creditor to pay the debtor’s costs in expunging stale claims.
The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.
