Legal News for Credit Union Managers Since 1990

Archive for Employees


28
Jul
2022

Credit Union Employee: Failure-to-Promote

Here, a Federal Court granted the credit union’s motion for summary judgment and dismissed Plaintiff’s claim that the credit union had discriminated against her by failing to promote her to a higher position. This case had traveled extensively throughout various federal courts and was previously sent back to this court from the U.S. Supreme Court. In […]

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28
Jun
2022

Automatic Wage Deposit Garnishment

In some states such as Texas, a debtor’s wages are generally not subject to garnishment. Here, however, this Texas debtor’s wages were directly deposited into the debtor’s account at I.B.M. Employees Southwest Federal Credit Union.    A judgment creditor thereafter garnished debtor’s account at the credit union and debtor brought an action to dissolve the garnishment, […]

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25
May
2022

Preferential Transfer: Creditor Retains Debtor Garnishment Funds Received within 90-Days of Bankruptcy Filing

Creditor retains garnishment funds received within two weeks before debtor filed bankruptcy. Court ruled in this case that date garnishment was “served” on garnishee defendant placed garnished funds outside of 90-day window for Trustee to set aside transfer to creditor. Here, the bankruptcy trustee sought to compel First of America Bank to return garnishment funds received […]

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12
Apr
2022

State Wage Garnishment Valid For Other States

In this case the Court decided that a garnishment issued on the debtor’s wages would be valid even though the debtor moved to another state. Here, a judgment was entered against the debtor in Kentucky.  At the time of entry of that judgment, the debtor resided in Kentucky. Thereafter, debtor moved to North Carolina. After […]

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05
Apr
2022

Nondischargeable Judgment Garnishment: No Automatic Stay Violation

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 […]

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28
Mar
2022

Credit Union Treasurer Liability

In this case, Grand Union Mount Kisco Employees Federal Credit Union filed an action against Sydney Kanaryk, its former treasurer, and sought to compensate the credit union for losses allegedly caused by that treasurer’s fraud and misfeasance. Stanley Kanaryk had been employed by Grand Union Mount Kisco Employees Federal Credit Union (“Grand Union”) as its […]

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21
Feb
2022

Garnishee Defendant Judgment: No Violation of Automatic Bankruptcy Stay

In this case, a creditor proceeded to collect on judgment against garnishee defendant even though principal defendant filed Chapter 7 bankruptcy. The Court found no violation of automatic stay. Judgment against garnishee defendant was on debtor’s wages.   Here, the creditor held a judgment against debtor and sought to collect the judgment with a garnishment on debtor’s wages. […]

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17
Feb
2022

Garnishment Funds: Property of Bankruptcy Estate

In this case, a creditor obtained a state court judgment against Dodds and garnished her wages. The garnishment was issued by the state court prior to debtor’s filing bankruptcy. In addition, the garnishment was served and debtor’s employer withheld $214.78 from her wages. Eleven days after the funds were withheld from debtor’s paycheck, Dodds filed […]

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07
Feb
2022

CUSO Employee Contracts Enforced

In this case, the Court addressed whether several employment contracts entered into between the Credit Union and its CUSO were enforceable. Here, the Credit Union desired to sell disability insurance to its members, but the regulations for federal Credit Unions prohibits any activity of this nature for profit. Hence, the Credit Union formed a CUSO […]

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10
Jan
2022

Credit Union Employee – Sex Discrimination

Wadsworth Federal Credit Union was previously sued by a former assistant manager who alleged that she was terminated because of her gender and replaced by the all male board of directors with a male counter part. The woman discharged assistant manager had been a 10 year veteran employee at the credit union. Price initially filed […]

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« Previous Entries
  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Judgment Lien Set Aside as Preferential Transfer
    • Barbie Dolls Debt Discharged
    • Debtor Re-Opening Bankruptcy Case to Add Creditor Denied
    • Dragnet Clause Enforced
    • Bankruptcy Redemption Requires Lump-Sum Payment
    • Credit Union Employee: Failure-to-Promote
    • Disappearing Collateral and Nondischargeable Debt
    • Suit Against Credit Union by Injured Member
    • Mortgaged Property Kept Without Reaffirmation or Redemption
    • Credit Union Violates Automatic Stay by Transferring Automatic Payments
    • Foreclosure – Receiver Appointed

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