Lender's Passive Response to Debtor's Inquiry Not an Attempt to Collect a Debt, Nor a Post-Discharge Violation of the Bankruptcy Discharge Injunction
By Michael L. Moskowitz and Michele K. Jaspan
A familiar scenario which Credit Unions and other lenders face is when their borrower obtains a discharge in bankruptcy, but still wishes to maintain a banking relationship with lender rather than try and obtain credit with a different institution. It is also common for Credit Union membership agreements to include standard verbiage that if the Credit Union incurs a loss due to borrower’s activities, or if an account is maintained in a manner to cause a loss to the Credit Union, then, in that instance, the Credit Union may terminate all accounts and services.