Legal News for Credit Union Managers Since 1990

Archive for Bankruptcy


02
Mar
2023

Credit Union Assessed Punitive Damages

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 […]

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01
Mar
2023

Attorney Fees Assesses Against Bankrupt Debtor

This Bankruptcy Court held that the debtor must pay creditor’s attorney fees after the creditor prevailed in a complaint for nondischargeability. A Chapter 7 bankruptcy frees the relieves the debtor from all prior personal obligations.  However, the policy “underlying bankruptcy law entitles only honest debtors to the fresh start” after discharge. If a debt results from […]

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28
Feb
2023

Automatic Stay Violation: Costs Assessed Against Credit Union

Credit Union held in Contempt of Court for failure to stop automatic payroll deductions upon debtor filing for bankruptcy. The debtor was on automatic payroll deduction to MFA Employees Credit Union for an unsecured loan. Debtor filed a Chapter 7 Bankruptcy but debtor did not cancel the payroll deductions for the credit union loan payments. The credit […]

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27
Feb
2023

Credit Union Lien Survives Chapter 7 Discharge

Here, the Ohio Court of Appeals ruled in favor of the Credit Union and held that a debtor’s attempt to avoid a security interest in bankruptcy actually survives the bankruptcy discharge. Here, the debtors borrowed money from the Credit Union and granted to the Credit Union a non-purchase money security interest in the debtors’ Ford […]

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13
Jan
2023

Reopening Bankruptcy Case Denied

Debtors filed a Chapter 7 bankruptcy, were discharged and the case closed. Slightly more than one year after the case was closed, debtors submitted a motion to reopen the case and add two more creditors that they had failed to list in the original proceeding. The court denied the debtors’ motion and refused to reopen […]

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11
Jan
2023

Cram-Down Plan Amendment Denied

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 […]

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10
Jan
2023

Temporary Freeze on Member Deposits

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 […]

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05
Jan
2023

Creditor Ordered to Release Lien

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 […]

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04
Jan
2023

Nondischargeable State-Court Judgment

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, […]

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22
Aug
2022

Reinstatement of Lien Denied

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 […]

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« Previous Entries
  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Defective Notice to Sell Collateral Defeats Collection of Deficiency
    • Credit Union Assessed Punitive Damages
    • Attorney Fees Assesses Against Bankrupt Debtor
    • Automatic Stay Violation: Costs Assessed Against Credit Union
    • Credit Union Lien Survives Chapter 7 Discharge
    • Constructive Discharge: Credit Union Violates Employee’s Rights
    • Right to Cancel – Truth-In-Lending Violation
    • Mechanics Lien Extinguished Credit Union Security Interest
    • Cashier Checks: Bank Liable to Credit Union
    • Reopening Bankruptcy Case Denied
    • Board Member Loses Suit Against Credit Union

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