A Chapter 7 debtor, who was not in default under the obligations of a consumer loan agreement, was not limited to redemption, reaffirmation, or surrender of the collateral. Here, the the court held that a Chapter 7 debtor could keep his vehicle pledged as collateral to the creditor, even though the debt was not reaffirmed, redeemed […]

Court Dismisses Bankrutpcy Cases for Substantial Abuse. Here, the debtor initially filed a Chapter 13 Bankruptcy that was dismissed. Thereafter, debtor filed a Chapter 7 Bankruptcy in an attempt to cause substantial delay to a creditor who sought to collect a valid debt against this debtor. A Chapter 7 Bankruptcy can be dismissed by the court […]

 The Bankruptcy Code provides, in part, that a student loan issued by a nonprofit institution, such as a credit union, and insured by the federal government, shall not be discharged in bankruptcy, absent a showing by the debtor(s) of true hardship. The Bankruptcy Code further provides that a Chapter 13 repayment plan may not unfairly […]

Fraudulent loan application results in Nondischargeable debt. 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 […]

In this case, the court found that Christmas gift charges on the debtor’s credit card would not be discharged by the bankruptcy court. In this unique case, the court held that the creditor need not prove the debtor made a misrepresentation to the creditor in the use of the credit card. In this case, debtor […]

In this case the debtor owed Bank One nearly $2,000.00 on a credit card when he filed a Chapter 7 Bankruptcy. The bank’s attorney proceeded to schedule an examination of the debtor, under oath, often referred to as a Rule 2004 exam. The bank’s attorney had an Order entered with the Court requiring the debtor […]

In this case, a U.S. Bankruptcy Court ruled that Calumet National Bank’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. Here, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

Corporate creditors and credit unions, normally direct their own attorney to appear in certain cases at the “first meeting of creditors” when a debtor files for bankruptcy. The bankruptcy court has held that a corporate creditor may have a regular employee, who is not an attorney, appear on its behalf at the first meeting of […]

In this case, the Bankruptcy Court held that a state court judgment was nondischargeable in bankruptcy. A state court judgment previously found the debtor liable for fraud. Although the federal court has exclusive jurisdiction as to determining dischargeability in bankruptcy, the federal court nevertheless found the debtor was precluded from refuting the state court judgment. […]

This case allowed a Tardy Chapter 13 Claim.  In every Chapter 13 bankruptcy, the court establishes a deadline for creditors to file a proof of claim. Creditors are advised of the last date to file a proof of claim in the initial notice of debtor’s filing for bankruptcy that is sent out by the court […]