In this case, an Ohio Bankruptcy Court held that a creditor’s lien noted on an automobile’s certificate of title had priority over a subsequent artisan’s lien obtained by a repair shop. Here, the debtors pledged their automobile as security for a loan. The lien was properly placed on the vehicle’s title. Thereafter, the vehicle was repaired […]

In this case, the Federal Court held that a guarantor on a loan is not excused from liability even when the principal debtor files bankruptcy. Here, an obligation to the creditor was guaranteed by another party. The principal debtor filed bankruptcy and proposed to “cram down” the obligation to the creditor. Creditor filed an action against the guarantor […]

Creditor with nondischargeable judgment may garnish debtor without violating bankruptcy automatic stay.   In the case of In re Embry, the court held that a creditor holding a nondischargable judgment against a debtor may garnish debtor’s assets even though the bankruptcy stay is in effect and the debtor has not been granted a discharge from the […]

Chapter 7 Bankruptcy Dismissed for Substantial Abuse and Bad Faith filing due to Debtors’ Excess Income.  Debtors’ excess estimated income over expenses defeated debtor’s Chapter 7 Bankruptcy.  Here, debtors’ bankruptcy schedules identified their residence as valued at $80,000, with two mortgages totalling $77,000. Debtors also listed two vehicles valued at $40,000, with secured liens of approximately $46,000 against […]

ISSUE:  Whether a mortgagee bidding total debt at foreclosure sale can recover post-foreclosure advances for repairs and/or improvements through a deficiency action against mortgagor. CONCLUSION: A mortgagee (Lender) cannot pursue a mortgagor for a deficiency arising from post-foreclosure advances expended to repair or improve the premises. When a mortgagee makes a full credit bid for […]

In this case, debtor filed a Chapter 13 case which sought to discharge, among other debts, an obligation that was previously held nondischargeable in a Chapter 7 bankruptcy filed several years earlier.   The debt that was found to be nondischargeable in the Chapter 7 case was due to a check written by the debtor […]

Here, the debtor, a physician, borrowed money from the bank and promised to secure that loan with a pledge of a $50,000 bond that the debtor could not locate at the time of the loan. The bank agreed to loan the money as long as Dr. Bercier brought in the bond at a later date […]

Debtor submitted a materially false loan application causing financial loss to the creditor, but the Court found no “reasonable reliance” by the creditor on the loan application and discharged the debt in bankruptcy. Here, the court held that creditor ITT Financial Services (ITT) had not reasonably relied on the debtor’s false loan application and the court discharged the […]

Here, the appellate court reversed a bankruptcy court ruling discharging Roberts’ student loans in a Chapter 7 bankruptcy. Here, Roberts borrowed more than $25,000 of student loans from Equipment Federal Credit Union and attended Eastern Illinois University. Seven months after Roberts’ student loans became due, he filed bankruptcy and sought to discharge the credit union’s […]

Court rules credit card debts not listed in bankruptcy schedules were not discharged.  Here, debtor filed bankruptcy against her creditors and inadvertently failed to list NCNB National Bank of Florida. The bank had no knowledge of the bankruptcy filing. Three years after the debtor’s discharge in bankruptcy, debtor petitioned the court to reopen the case […]