In re Duke
United States Court of Appeals for the Seventh Circuit
79 F.3d 43 (1996)
Relevant factsFree
After William Duke (plaintiff) filed for chapter 7 bankruptcy and listed Sears, Roebuck & Co. (Sears) as a creditor, triggering an automatic stay, Sears sent a letter to Duke's attorney (with a copy to Duke) stating his account balance and offering to extend him a new line of credit if he reaffirmed and paid the debt instead of discharging it, while noting the letter was for informational purposes only. Duke believed this offer violated the automatic stay; the district court disagreed, and Duke appealed.
IssueFree
Whether a creditor violates bankruptcy's automatic stay by sending a debtor a nonthreatening letter offering future credit in exchange for reaffirming a discharged debt.