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 […]

Here, the bankruptcy debtor was employed by the First Heritage National Bank. Prior to debtor’s employment at First Heritage, he was employed at an affiliated bank as a loan officer, supervised employees, approved customer checks and generally managed the day-to-day business of the bank. The debtor-employee borrowed money from First Heritage on several occasions.  Although all of […]

In this case, the court dismissed debtor’s Chapter 7 bankruptcy after discovering that only 76% of the debts scheduled were “consumer debts” and that the debtor had sufficient income to support a Chapter 13 repayment plan. The Bankruptcy Code permits dismissal of a case if the debtor has committed “substantial abuse”, however, the Code does […]

False Credit Union Loan Application results in nondischargeable debt for Credit Union. Here, debtor applied for several loans at the Credit Union, and on all but the last application, the debtor listed a mortgage debt on her residence. Each of the loan applications were denied due to an unacceptable debt to income ratio, except for the […]

In this case, the bankruptcy court found the debtor was attempting to abuse the bankruptcy system, and the court ordered debtor’s Chapter 7 bankruptcy case be dismissed unless he agreed to convert the case to a Chapter 13 and repay his creditors. Here, the 71 year old debtor filed financial schedules with the bankruptcy court […]

Here, the U.S. Bankruptcy Court held that VISA charges on debtor’s preapproved credit card were not dischargeable in bankruptcy. Here, the creditor sent an unsolicited credit card application to debtor for a preapproved VISA card with a $4,000 line of credit. The debtor accepted the card when she already had amassed some $29,000 in other credit […]

In the case, the credit card issuers sought to determine that the Chapter 7 debtor’s cash advances were nondischargeable. Here, debtor incurred more than $11,000 in cash advances on his Chevy Chase Visa card and another $5,000 on his Citibank credit card within ten months prior to filing for bankruptcy. The debtor was current with his […]

In this case, the debtor filed successive Chapter 13 petitions for the apparent purpose of frustrating the debtor’s mortgage company from foreclosing on debtor’s real estate. The Court held that the successive bankruptcy filings were in bad faith and in violation of the Bankruptcy Code requirement that all filings must be in good faith. Costs […]