In this case, Sikorsky Federal Credit Union of Connecticut brought suit on a note signed by the debtor in the amount of $5,253.64. The note provided for sixty installment payments; the purpose for the loan was to extinguish existing debts as well as pay, in part, for the funeral of the debtor’s longtime friend. The […]

Credit Union Home Equity Mortgages and deeds-of-trust of any nature are generally junior in position to a first mortgage/lien holder. As such, the credit union can and should protect its Home Equity portfolio as securely as possible from collateral damage if a first mortgage proceeds into foreclosure. Question: Will the credit union receive a notice if the […]

A creditor who improperly identified its secured interest on a vehicle title as the “owner” instead of a “lienholder” was sufficient to perfect its security interest in the motor vehicle. In this case, the creditor intended to place a lien on the debtor’s vehicle, however, creditor mistakenly designated itself on the certificate of title as the […]

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 […]

Borrower moving collateral to another State dissolved security interest when creditor did not file a financing statement in Georgia within four months after the debtor moved to that state. Facts: 1. Debtor, Specialty Contracting and Supply Company, granted a security interest in its equipment, among other items of collateral, to one Richard Fraley; Fraley was an officer […]

In the case of Union Bank & Trust v. Elmore County National Bank (Supreme Court of Alabama, Case No. 1900804), the Union Bank’s loan to a debtor resulted in a $10,900 loss. Here, Union Bank issued a loan to one Bill Burnette in the amount of $10,900 for the purpose of purchasing a Dodge Caravan. […]

In this case, Robert Schultz and his wife owed more than $15,000 to Hancock Bank on a loan secured by debtors’ Chevrolet Caprice. The amount owed was not in dispute. Debtors’ Chapter 13 Plan proposed to repay Hancock Bank the value of its security, which was listed at $8,175. The balance of the funds owed […]

The Sixth Circuit Court has ruled that the Fair Debt Collection Practices Act (FDCPA) does not require an attorney to send a collection letter to the borrowers before a creditor files suit against the borrower(s).   In this case, the creditor’s attorney did not send a demand letter to the debtor prior to filing suit. Here, the Sixth Circuit additionally ruled that […]

In some jurisdictions, but not in Michigan, Bankrupt debtors must either redeem, reaffirm or surrender the collateral and cannot keep the collateral and otherwise continue making payments. When a debtor files a Chapter 7 bankruptcy, the Bankruptcy Code provides that the debtor(s) must either: 1) “reaffirm” their secured obligations and keep the collateral pledged on the […]

In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, however, […]