In this case,  debtor filed a Chapter 7 bankruptcy attempting to liquidate some $67,000 of unsecured credit card debts. The Court denied the discharge as to Corestates Bank. Here, the debtor used his credit cards to obtain cash advances for daily living expenses. The debtor’s charge cards were nearly all charged to the maximum limit. […]

Here, the credit union brought an action against Carol and Donald Phillips and their seventeen year old son after the son stole a check from his parents, forged his mother’s signature and made the check payable to himself. The son then presented the check to the credit union and obtained $2,200. Most states have statutes […]

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 […]

Here, the debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The debt was intended to be utilized to pay off an existing second mortgage on debtor’s residence and for the purchase of a balloon business. At the closing on the credit union’s […]

In this case, a creditor proceeded to collect on judgment against garnishee defendant even though principal defendant filed Chapter 7 bankruptcy. The Court found no violation of automatic stay. Judgment against garnishee defendant was on debtor’s wages.   Here, the creditor held a judgment against debtor and sought to collect the judgment with a garnishment on debtor’s wages. […]

Preferential Transfer: “Time” of Transfer adopted. — On September 11th, a garnishment was filed on debtor’s savings account; — On September 17th, a garnishment order to pay was issued by the court; — On September 19th, garnishee defendant received the order to pay; — On September 27th, funds were paid to the court by the […]