In this case, the U.S. Bankruptcy Court for the District of Rhode Island held that Equitable Credit Union acted properly when it repossessed debtor’s mobile home after the bankruptcy court discharged debtor and the bankruptcy stay had been lifted. The debtor borrowed money from the credit union and granted a security interest to the credit union in his […]

This case held that a credit union’s “freeze” on a bankrupt members’ account violates the bankruptcy court’s automatic stay if the member’s loan secured by the deposit is not in default. In this case, the debtors previously borrowed funds from the credit union and granted to the credit union a security interest in their deposits […]

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

Here, the debtors proposed a Chapter 13 reorganization plan that included a $150.00 voluntary charitable payment to a church per month and another $30.95 per month for cable television. Fort Eustis Federal Credit Union timely objected to the debtors’ payments above. However, the Bankruptcy Court confirmed the debtors’ plan over the credit union’s objections. The credit union […]

Here,  the court denied confirmation of a Chapter 13 bankruptcy repayment plan when the unsecured creditors would have received more under a Chapter 7 bankruptcy. The court found that the best interest of creditors would not be supported in this Chapter 13 case, since those creditors would receive greater repayment in a Chapter 7 case.  […]

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

Here, debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The loan was for the purpose of paying off an existing second mortgage on debtor’s residence and for the purchase of a business. At the closing on the credit union’s new mortgage, debtor executed the closing […]

Bankruptcy Court Orders that either debtor convert Chapter 7 case to Chapter 11 case or the Court would Order the case be dismissed for Abuse of Process by debtor. In this case, the bankruptcy trustee filed a motion to dismiss debtor’s petition after concluding that debtor had the ability to repay his obligations. The Bankruptcy […]

Pre-Approved Credit Card debt held nondischargeable.  Here, the debtor received a pre-approved credit application and, within one and one-half months prior to filing a bankruptcy, borrowed more than $1,600 from ITT Financial Services (hereinafter “ITT”). Debtor failed to make any payments to ITT on his loan and sought to discharge the debt in bankruptcy. This […]