In this case, John Heller was a member of the Board of Directors of CACL Federal Credit Union.    CUMIS Insurance Society informed CACL that the bond for Heller had been revoked.   Despite the loss of his bond and inability to find a replacement bond (as required by the NCUA), Heller ran for reelection […]

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 an earlier precedent setting ruling, the bankruptcy court held that a bank’s temporary freeze on its depositor’s accounts did not violate the bankruptcy court’s automatic stay in a Chapter 7 proceeding. Here, the Bank of Newport had a standing policy that upon notice of a checking account customer filing a Chapter 7 Bankruptcy, the funds on […]

Following the Credit Union’s purchase of the house, two occupants residing in the house at the time of the purchase were given notice that if they did not voluntarily move from the premises, they would be evicted.   Here, the residents did not move out, and a complaint for eviction was filed with the court.   The court […]

In this case, the credit union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory note signed by the defendant (Shaham). Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his claim […]

In this case, Textron Lycoming Federal Credit Union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory Note signed by the borrower-defendant. Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his […]

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 […]

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, […]

Court denies reinstatement of lien denied in this case when CoreStates Bank inadvertently released a secured lien it held on debtor’s Mercedes automobile. The release took place after the debtor filed a Chapter 13 bankruptcy. CoreStates attempted to reinstate the lien and requested the bankruptcy court to enforce imposition of the mistakenly released lien. The bankruptcy court […]

In this case, the debtor executed a promissory note and security agreement granting Continental Bank a security interest in certain collateral which would also secure future advances. The agreement provides, in pertinent part: To secure payment of all loans made and to be made by the bank to borrower and to secure all other indebtedness […]