Legal News for Credit Union Managers Since 1990

Archive for Bankruptcy


11
Sep
2023

False Application: Nondischargeable Debt

False loan application results in nondischargeable debt. Here, debtor submitted a loan application to the bank and represented that he and his wife were on the title of debtor’s residence. In fact, the residence was only found to be titled in debtor’s wife’s name. Thereafter, debtor filed an individual Chapter 7 bankruptcy and the bank filed […]

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06
Sep
2023

Credit Union & Its Attorney Violate Bankruptcy Stay

The trial court held that the credit union’s actions, as well as that of the credit union attorney, violated the bankruptcy code’s automatic stay. The trial court ordered the credit union and its attorney to pay $15,000 in punitive damages. Here, debtor purchased a kit to transform his 1970 Volkswagen chassis into a 1937 Jaguar […]

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14
Aug
2023

Nonischargeable Cash Advances

In this case,  debtor filed a Chapter 7 bankruptcy attempting to liquidate some $67,000 of unsecured credit card debts. The Court denied the discharge as to Corestates Bank. Here, the debtor used his credit cards to obtain cash advances for daily living expenses. The debtor’s charge cards were nearly all charged to the maximum limit. […]

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08
Aug
2023

Garnishee Defendant Judgment: No Violation of Automatic Bankruptcy Stay

In this case, a creditor proceeded to collect on judgment against garnishee defendant even though principal defendant filed Chapter 7 bankruptcy. The Court found no violation of automatic stay. Judgment against garnishee defendant was on debtor’s wages.   Here, the creditor held a judgment against debtor and sought to collect the judgment with a garnishment on debtor’s wages. […]

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07
Aug
2023

Preferential Transfers & Garnishment

Preferential Transfer: “Time” of Transfer adopted. — On September 11th, a garnishment was filed on debtor’s savings account; — On September 17th, a garnishment order to pay was issued by the court; — On September 19th, garnishee defendant received the order to pay; — On September 27th, funds were paid to the court by the […]

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27
Jul
2023

Statement of Financial Affairs: Discharge Denied

 Here, debtors failed to keep adequate records of their finances, and consequently the court denied their discharge. The debtors’ Statement of Financial Affairs indicated that they were principals in nine corporations. Some of the corporations were inactive, however, debtor, Mr. Vetri testified that he was unable to locate any of the business records of the […]

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26
Jul
2023

Chapter 13 Bankruptcy Home Equity Mortgage Modifications

Question: Are credit union Home Equity and/or Second Mortgages subject to modification by a debtor’s Chapter 13 Plan? Answer: Yes. In the U.S. Bankruptcy Courts located within the Sixth Circuit Court of Appeals, and applicable to the Federal Bankruptcy Courts located within the State of Michigan, this issue is currently governed by the rulings in the case […]

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21
Jul
2023

Nondischargeable Credit Card Debt

In this case, the debtor obtained a credit card from FCC National Bank with a credit limit of $5,000. At the time debtor applied for the credit card, he was employed earning a salary of $500 per week. Shortly after obtaining the card, debtor lost his job and began incurring charges on the credit card. […]

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12
Jun
2023

Discharge Denied: Joint Ownership of Assets

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 […]

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09
Jun
2023

Worthless (NSF) Checks Constitute Fraud

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 […]

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

    • False Application: Nondischargeable Debt
    • Truth in Lending Violation: Collateral Not Identified
    • Collateral Removed From State – Renewal of Perfected Lien
    • Credit Union & Its Attorney Violate Bankruptcy Stay
    • Credit Union Employee Policies
    • Wrongful Repossession & Conversion: Creditor Held Liable
    • “Investment” Information Provided to Member
    • Nonischargeable Cash Advances
    • Parental Liability: Minor’s Forged Check
    • Debt Cancellation Insurance
    • Credit Union’s Failure to Payoff Existing Mortgage

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