Debtors attempt to cram-down secured loan to “unsecured” status after debtor’s Chapter 13 Confirmation Hearing was denied by Court. Here, debtor owed a loan to creditor secured by one Mercury automobile. Debtor’s Chapter 13 repayment plan proposed to cram-down the obligation to the fair market value of the vehicle and repay creditor only $1,125, plus […]

In this case, the Bankruptcy Court held that a general judgment previously entered in the state court would not be discharged in bankruptcy. Here, a state court judgment was entered against the debtor for $100,000. The state court judgment did not indicate that the judgment would not be subject to discharge in a later bankruptcy, […]

Credit Union Violates Truth in Lending Act, but Court denies co-borrowers Right of Rescission of mortgage, as mortgage was not on co-debtors’ primary residence.    Here, the Coxes (Borrowers) were indebted to Knox County School Employees Credit Union. Debtors wanted to borrow additional funds from the credit union to be secured by their residence.   Debtors did […]

Here, the debtors proposed a Chapter 13 reorganization plan that included a $150.00 voluntary charitable payment to a church per month and another $30.95 per month for cable television. Fort Eustis Federal Credit Union timely objected to the debtors’ payments above. However, the Bankruptcy Court confirmed the debtors’ plan over the credit union’s objections. The credit union […]

Here,  the court denied confirmation of a Chapter 13 bankruptcy repayment plan when the unsecured creditors would have received more under a Chapter 7 bankruptcy. The court found that the best interest of creditors would not be supported in this Chapter 13 case, since those creditors would receive greater repayment in a Chapter 7 case.  […]

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

In this case, debtors 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 to Hancock of approximately $6,800 was […]