Answer:
In a bankruptcy, the burden of providing proper notice is on the debtor. Notice is not considered to be effective unless it complies with the Bankruptcy Code's notice rules or is actually brought to the creditor's attention. If the creditor doesn't receive notice that complies with the bankruptcy rules, the creditor would have a defense against a claim that the automatic stay has been violated.
However, there have been cases where other types of notice, including what you describe, have been considered sufficient. If the bank has outstanding loans with the consumer, it should be careful not to miss important deadlines in the bankruptcy such as filing a proof of claim. Once these actions have been taken by the bank, it is no longer possible for the bank to claim it had no knowledge of the bankruptcy.
First published on BankersOnline.com 4/22/13
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