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 […]

Here, the debtor filed a Chapter 7 bankruptcy and an Order of Discharge was entered with the Court. Thereafter, the bank filed a Complaint with the Bankruptcy Court to revoke the debtor’s discharge. The bank alleged in its Complaint that shortly prior to the bankruptcy filing, the debtor sold an asset and applied the sale […]

In this case, the Bankruptcy Court denied the Debtor’s Discharge due to debtors failure to maintain records under Section 727(a)(3) of the Bankruptcy Code. Section 727 exempts from discharge any debtor who has: . . . failed to keep or preserve any recorded information, including books, documents, records, and papers, from which the debtor’s financial condition or business […]

Debtor pays repossession costs and Court orders collateral returned to debtor.    In this case, a creditor seized the debtor’s vehicle pursuant to an execution on an outstanding judgment. Soon thereafter, debtor filed a Chapter 7 Bankruptcy before the seized vehicle could be sold under the execution. Debtor claimed most of the value of the […]