In this case, Robert Schultz and his wife owed more than $15,000 to Hancock Bank on a loan secured by debtors’ Chevrolet Caprice. The amount owed was not in dispute. Debtors’ Chapter 13 Plan proposed to repay Hancock Bank the value of its security, which was listed at $8,175. The balance of the funds owed […]

In this case the Court decided that a garnishment issued on the debtor’s wages would be valid even though the debtor moved to another state. Here, a judgment was entered against the debtor in Kentucky.  At the time of entry of that judgment, the debtor resided in Kentucky. Thereafter, debtor moved to North Carolina. After […]

In some jurisdictions, but not in Michigan, Bankrupt debtors must either redeem, reaffirm or surrender the collateral and cannot keep the collateral and otherwise continue making payments. When a debtor files a Chapter 7 bankruptcy, the Bankruptcy Code provides that the debtor(s) must either: 1) “reaffirm” their secured obligations and keep the collateral pledged on the […]

In this case, the Chapter 13 debtors moved to hold Idaho Central Credit Union in contempt for allegedly violating the Bankruptcy Court’s automatic stay after the credit union froze members’ funds on deposit. Debtors also sought sanctions against the credit union for the alleged violation. The credit union responded by contending it did not violate the […]

In these two cases, the bankruptcy court entered two nondischargeable judgments against the same debtor in favor of Pittsburgh Police Federal Credit Union and Allegheny County No. 1 Federal Credit Union. Here, the debtor was a member of both Pittsburgh Police Federal Credit Union (hereinafter “PPFCU”) and Allegheny County No. 1 Federal Credit Union (hereinafter […]

General Motors Acceptance Corporation issued a loan to debtor secured by debtor’s new automobile. The debtor purchased disability insurance through GMAC which provided that payments on the loan would be made to GMAC by the insurance company if the debtor became disabled. Debtor did, indeed, become disabled when she suffered a stroke. A claim was […]

In the case, the credit card issuers sought to determine that the Chapter 7 debtor’s cash advances were nondischargeable. Here, debtor incurred more than $11,000 in cash advances on his Chevy Chase Visa card and another $5,000 on his Citibank credit card within ten months prior to filing for bankruptcy. The debtor was current with his […]

In this case, the bankruptcy court dismissed debtor’s Chapter 7 bankruptcy after discovering the debtor had previously titled his property jointly with his wife, who did not file bankruptcy. The debtor sought to keep all of his property through the joint ownership with his wife and utilization of the Bankruptcy Code exemptions. Although the bankruptcy […]

Security State Bank of Hamilton issued a loan of nearly $17,000 to Jerry and Henrietta Marshall in exchange for the Marshall’s pledge of a security interest in the debtors’ new car. Debtors signed the promissory note and pledge of security. The bank’s personnel, however, failed to identify the pledged security on the Truth-in-Lending disclosure. Debtors’ […]

Here, Progressive Credit Union was held liable for more than $158,000.00 when the credit union granted a secured loan to a member and did not pay off a prior lienholder.  The appellate court found the credit union liable to the former lienholder. When Progressive Credit Union granted this loan, it searched the county and state lien records and […]