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 […]

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 […]

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 […]

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 […]

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 […]

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, […]

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 […]

Debtor’s attempt to re-open his bankruptcy case was denied by the Court when debtor asked to reopen his bankruptcy case fourteen months after the case was closed.   The debtor sought to reopen the case and add an additional creditor which had not been listed in the initial case. The bankruptcy court applied the “doctrine of laches”, which prohibits an […]

Credit Union Home Equity Mortgages and deeds-of-trust of any nature are generally junior in position to a first mortgage/lien holder. As such, the credit union can and should protect its Home Equity portfolio as securely as possible from collateral damage if a first mortgage proceeds into foreclosure. Question: Will the credit union receive a notice if the […]

Debtors’ residence was in a mortgage foreclosure when, after the foreclosure judgment but prior to the sheriff’s sale, the debtors filed a Chapter 13 bankruptcy. The debtors’ Chapter 13 Plan provided for curing the prepetition arrearage over the term of the Chapter 13 plan and also provided for regular monthly payments on the mortgage after […]