In this case, a credit union member obtained two loans from L.C.E. Federal Credit Union secured by his Jeep Comanche and Mazda RX-7. The loans went into default and both vehicles were repossessed by the credit union. Thereafter, the credit union sent a notice to the debtor advising him that the vehicles would be sold at […]

Offset upheld against Credit Union Member Shares pledged as collateral.   In this case, the bankruptcy court held that a credit union properly offset a member’s share deposits and applied them to the debtor’s loan balance. Here, the debtor borrowed funds from the Utica Community Federal Credit Union and signed a security agreement pledging all deposits at […]

A Chapter 13 bankruptcy debtor attempted to confirm a plan that provided for 40% repayment on unsecured student loans and only 8% repayment on all other unsecured loans. The debtor created two classes of unsecured loans and provided unequal repayment between the student loans and all other general unsecured creditors. Often, if the debtor can […]

In this case, a creditor obtained a state court judgment against Dodds and garnished her wages. The garnishment was issued by the state court prior to debtor’s filing bankruptcy. In addition, the garnishment was served and debtor’s employer withheld $214.78 from her wages. Eleven days after the funds were withheld from debtor’s paycheck, Dodds filed […]

Creditors must be aware that a bankruptcy filing by a principal debtor may not toll (delay) the Statute of Limitations to proceed against a non-bankruptcy co-debtor. The Credit Union in this case was prevented from collecting a deficiency amount owed and suffered a financial loss. This Court held that a Chapter 11 bankruptcy filing does not toll […]

Here, Blackstone Financial Services “Blackstone” held a loan with the debtor secured by debtor’s automobile. The loan was in default and Blackstone had a repossession order out on the collateral. Although Fisher filed a Chapter 7 bankruptcy, an individual allegedly from Blackstone, referred to here as Mr. Clemente, contacted Fisher by telephone and stated that […]

A creditor who improperly identified its secured interest on a vehicle title as the “owner” instead of a “lien-holder” was sufficient to perfect its security interest in the motor vehicle. In this case, the creditor, Microbank Companies Inc., the intended to place a lien on the debtor’s vehicle, however, creditor mistakenly designated itself on the […]

In the case,  a member of Austin Area Teachers Federal Credit Union (Austin Area) pledged her certificate of deposit at the credit union as collateral for her son’s note to First City Bank-Northwest Hills (First City). When the son defaulted on the loan, First City demanded the credit union release the pledged certificate of deposit to […]

Court orders collection against non-filing bankruptcy codebtor allowed to the extent that said creditor was not paid through the plan.   Debtors filed a Chapter 13 bankruptcy. Prior to filing a Chapter 13 bankruptcy, debtors borrowed money from First Interstate Bank of Texas and Suzanne’s father cosigned for the debt. Debtors’ Chapter 13 repayment plan proposed a […]

In this case,  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 […]