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In re Duke

79 F.3d 43 (1996)

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In re Duke

United States Court of Appeals for the Seventh Circuit

79 F.3d 43 (1996)

Facts

William Duke (plaintiff) filed for chapter 7 bankruptcy and listed Sears, Roebuck & Co. (Sears) as one of his creditors. The bankruptcy triggered an automatic stay. After Sears received notice of the stay, Sears sent a letter to Duke’s attorney and a copy of that letter to Duke. The letter stated the balance on Duke’s account and then explained that Sears would extend a new line of credit to Duke if Duke reaffirmed and paid the debt, instead of discharging it. The letter also stated it was for informational purposes only. Duke believed Sears violated the automatic stay by the offer contained in the letter. The district court ruled that Sears had not violated the stay. Duke appealed.

Rule of Law

Issue

Holding and Reasoning (Wood, J.)

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