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. […]

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. […]

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 […]

 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 […]

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 […]

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. […]

Refiananced Loan after Bankruptcy Discharge is unenforceable.   Creditors cannot re-write or refinance a discharged loan after the debt was discharged in bankruptcy.   In the case of Charles Artzt v. Lindale National Bank, 145 B.R. 866, the debtor owed more than $31,000 to Lindale National Bank (the “bank”). Debtor filed a Chapter 7 bankruptcy […]

The Bankruptcy Code provides in Title 11 U.S.C. 523(a)(2)(A) and (C), in pertinent part, that a consumer who incurs debts owed to a single creditor and aggregating more than $500 for “luxury goods” within 40 days prior to filing bankruptcy, shall not have that debt discharged in bankruptcy. Here, debtor purchased more than $1,100 of collector […]

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 […]

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 […]