In this case, two debtors applied for and closed on a mortgage with American General Finance, Inc. (hereinafter “American General”). The debtors represented to American General that they only had one mortgage on their residence. American General intended to grant the debtors a loan secured by a second mortgage; American General obtained a title search […]

Bankruptcy Court Sets Aside Agreed Waiver of Right to Rescind Reaffirmation Agreement as being unenforceable. In the Case of Dustin M.J. Vaupel and Aimee D. Vaupel, Debtors, after the Debtors entered into a Reaffirmation Agreement with Collins Community Credit Union, both the parties agreed to Waive the Debtors Right to Rescind the Reaffirmation Agreement. Here, the […]

Here, the U.S. Bankruptcy Court held that a debtor’s issuance of some $8,784.00 of worthless non-sufficient fund (NSF) checks would be  nondischargeable in bankruptcy. In this progressive case for creditors, the court found that debtor’s tender of five nonsufficient fund checks (NSF) constituted fraud by the debtor. The debtor tendered said checks to Supercom in exchange for debtor’s […]

In this case, the bankruptcy court dismissed debtor’s Chapter 7 bankruptcy after discovering the debtor had previously titled his property jointly with his wife, who did not file bankruptcy. The debtor sought to keep all of his property through the joint ownership with his wife and utilization of the Bankruptcy Code exemptions. Although the bankruptcy […]

In this case, an Ohio court awarded $15,000 against a credit union and its attorney, as well as ordering the credit union to pay debtor’s attorney fees in excess of $7,000. Here, the debtor filed a Chapter 7 bankruptcy and listed his debts to Champion Credit Union with the bankruptcy court. The credit union received […]

In this case, the credit union brought an adversary proceeding to determine dischargeability of a debt secured by a classic automobile, which the Chapter 7 debtor had dismantled into composite parts that he then sold. Here, debtor initially borrowed $6,000 from Moog Employees Federal Credit Union to finance the purchase of a 1970 Chevrolet Camaro Z-28, […]

Excessive gambling debts result in nondischargeable debt. Here, FCC National Bank, and several other creditors, objected to the debtor’s bankruptcy on the basis that the debtor borrowed money without any ability or intention to repay the debts. Prior to the filing of bankruptcy, the debtor withdrew $40,000.00 from a trust account. She gave away $20,000.00 […]

An Illinois Court held wage assignment, unlike a garnishment on debtor’s wages, unconditionally vested creditor’s rights. In this case, the debtor sought a return of $546.93 that had been withheld from his wages pursuant to a voluntary wage assignment and paid to Mercury Finance Co. (“creditor”) prior to his filing a Chapter 13 bankruptcy. Here, debtor’s […]

A Chapter 7 debtor brought an action against Security Federal Credit Union, alleging discrimination and violation of the automatic stay.   The bankruptcy court held that:   (1) termination of debtor’s member services at the credit union was not discrimination; (2) an administrative freeze on debtor’s account did not violate the automatic stay; (3) credit […]

Here, Debtors’ Bankruptcy was Dismissed for Substantial Abuse by the Debtors. In this case, the Chapter 7 bankrupts filed their estimated monthly budget with the bankruptcy court, which included a $350 contribution to their church. The court found that such a large monthly contribution by the debtors to their church each month constituted an abuse of […]