In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, however, […]

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 […]

Here, the Chapter 7 Debtor made voluntary payments to creditor after debtor’s filing for bankruptcy. Both debtor and creditor agreed that the post-petition payments would be applied to prepetition debts owed to the creditor. The debtor made more than $39,000 of voluntary payments to creditor.   Some two years after the voluntary payments were made, […]

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 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 this case, an Ohio Bankruptcy Court held that a creditor’s lien noted on an automobile’s certificate of title had priority over a subsequent artisan’s lien obtained by a repair shop. Here, the debtors pledged their automobile as security for a loan. The lien was properly placed on the vehicle’s title. Thereafter, the vehicle was repaired […]

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 […]

Here, Dutch Point Credit Union’s perfected security interest was extinquished upon the sale its collateral by a automobile repair facility.    The credit union granted a loan secured by debtor’s Datsun automobile. The credit union properly placed its lien on the vehicle. After the loan was granted, the vehicle was in an accident during the same year.   […]

In this case, the Federal Court held that a guarantor on a loan is not excused from liability even when the principal debtor files bankruptcy. Here, an obligation to the creditor was guaranteed by another party. The principal debtor filed bankruptcy and proposed to “cram down” the obligation to the creditor. Creditor filed an action against the guarantor […]

Creditor with nondischargeable judgment may garnish debtor without violating bankruptcy automatic stay.   In the case of In re Embry, the court held that a creditor holding a nondischargable judgment against a debtor may garnish debtor’s assets even though the bankruptcy stay is in effect and the debtor has not been granted a discharge from the […]