Statements Received After Discharge May Violate Bankruptcy Code Even If Creditor Includes A Disclaimer

16 Jun Statements Received After Discharge May Violate Bankruptcy Code Even If Creditor Includes A Disclaimer

If a creditor sends a letter to you after your discharge, they may be violating the Bankruptcy Code – even if they include language saying it’s just for informational purposes.

The recent case of In re BIRAKOYE NASSOKO, Case No. 07-11966 (ALG) (SDNY 2009) involved a car lender that sent a consumer a payment demand comtaining the following “disclaimer”:

If your account is included in a bankruptcy proceeding, please forward a copy of this letter to your counsel and/or the trustee.  Effective 12/01/2008, you may refer them to a Peak5 Customer Service Representative at 877-236-7672 and ask for the bankruptcy department.

The court, in reviewing the case, noted that sending the letter may be a violation of the discharge injunction in spite of the disclaimer.  The creditor knew of the discharge prior to sending the letter, so the disclaimer may well have been a thinly-veiled attempt to cover itself from liability.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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