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 […]

Co-Signer’s Probate Estate Claim allowed even though primary Debtor agreed to repay loan 100% through Chapter 13 Bankruptcy Plan. Here, Callaway Bank issued a loan to Ralph Case who later filed a Chapter 13 bankruptcy. The loan was cosigned by Ruth Trammell, who passed away prior to Case’s filing for bankruptcy. The bank filed a motion […]

In some jurisdictions, but not in Michigan, Bankrupt debtors must either redeem, reaffirm or surrender the collateral and cannot keep the collateral and otherwise continue making payments. When a debtor files a Chapter 7 bankruptcy, the Bankruptcy Code provides that the debtor(s) must either: 1) “reaffirm” their secured obligations and keep the collateral pledged on the […]

Federal Right of Rescission applies to additional funds advanced with refinance.   The Truth in Lending Act (TILA) was adopted by Congress to promote the informed use of consumer credit. Consumers may rescind a credit transaction within three business days of its consummation where the lender acquires a mortgage interest in the debtor’s principal dwelling as security. […]

The Sixth Circuit Court has ruled that the Fair Debt Collection Practices Act (FDCPA) does not require an attorney to send a collection letter to the borrowers before a creditor files suit against the borrower(s).   In this case, the creditor’s attorney did not send a demand letter to the debtor prior to filing suit. Here, the Sixth Circuit additionally ruled that […]

In this case, Robert Schultz and his wife 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 […]