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. […]

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 […]

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 […]

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 […]

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 […]

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 […]