In this case, Sikorsky Federal Credit Union of Connecticut brought suit on a note signed by the debtor in the amount of $5,253.64. The note provided for sixty installment payments; the purpose for the loan was to extinguish existing debts as well as pay, in part, for the funeral of the debtor’s longtime friend. The […]

Here, the Court held that the Credit Union’s mortgage on a member’s real estate, inadvertently marked as “cancelled” when the loan was not paid, was still enforceable. This mortgage, sold by the Credit Union to the Federal Home Loan Mortgage Corp., was accidentally stamped as “cancelled” or paid. The mortgage was foreclosed upon and the […]

In some states such as Texas, a debtor’s wages are generally not subject to garnishment. Here, however, this Texas debtor’s wages were directly deposited into the debtor’s account at I.B.M. Employees Southwest Federal Credit Union.    A judgment creditor thereafter garnished debtor’s account at the credit union and debtor brought an action to dissolve the garnishment, […]

If collateral is not insured and the debtor files bankruptcy, proper procedure is to first lift the Bankruptcy Stay and then repossess collateral. Here, the court held that a creditor is entitled to lifting the Bankruptcy automatic stay if the secured collateral is not insured. An automobile in question in this case was not insured. […]