Does a Credit Union’s policy of requiring payment of a discharged debt before the debtor can open a new account violate the Discharge Injunction?

No. A New York bankruptcy court held that a credit union’s policy of not permitting a bankrupt debtor to open an account at the credit union unless the debtor repaid the debt that was owed to the credit union and discharged in the debtor’s bankruptcy case did not violate the discharge injunction. The court reasonned that the policy did not improperly coerce or harass the debtor to repay a discharged debt.

In re Morgan, 578 B.R. 712 (Bankr. N.D. N.Y., Dec. 12, 2017)

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