This Bankruptcy Court held that the debtor must pay creditor’s attorney fees after the creditor prevailed in a complaint for nondischargeability. A Chapter 7 bankruptcy frees the relieves the debtor from all prior personal obligations.  However, the policy “underlying bankruptcy law entitles only honest debtors to the fresh start” after discharge. If a debt results from […]

In Cincinnati Central Credit Union vs. Yuvonne Goss et al., this Ohio court noted that this case presents a common occurrence in the world of banking and one which the courts can resolve equitably. Here, one Terrence Fitzgerald made payable his check for $4,000 to New Look Auto Trim and Upholstery and delivered it to […]

Credit Union held in Contempt of Court for failure to stop automatic payroll deductions upon debtor filing for bankruptcy. The debtor was on automatic payroll deduction to MFA Employees Credit Union for an unsecured loan. Debtor filed a Chapter 7 Bankruptcy but debtor did not cancel the payroll deductions for the credit union loan payments. The credit […]

In this case, Dutch Point Credit Union challenged the sale of its collateral by a mechanic’s shop that resulted in extinguishing the credit union’s perfected lien. The credit union granted a loan secured by debtor’s Datsun automobile. The credit union properly placed its lien on the vehicle. After the loan was granted, the vehicle was in an […]

Here, the U.S. Bankruptcy Court ruled that a creditor’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. In this case, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

Check-kiting scheme results in liability of Bank to Credit Union. Here, Clark Crapps was a member of First Railroad Community Credit Union and also held accounts at Columbia County Bank [Columbia] and First Community Federal Credit Union [Credit Union]. Crapps was engaged in an elaborate check-kiting scheme for which neither Columbia nor the Credit Union was aware. Columbia […]

In this case, the credit union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory note signed by the defendant (Shaham). Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his claim […]

In this case, John Heller was a member of the Board of Directors of CACL Federal Credit Union.    CUMIS Insurance Society informed CACL that the bond for Heller had been revoked.   Despite the loss of his bond and inability to find a replacement bond (as required by the NCUA), Heller ran for reelection […]

In this case, Textron Lycoming Federal Credit Union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory Note signed by the borrower-defendant. Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his […]

Here, a jury verdict was entered in favor of Barbara Carle (Carle), a former manager of McChord Credit Union, for wrongful discharge based upon age discrimination. The jury awarded the former manager $100,000.00 for age discrimination, another $18,000.00 for negligent infliction of mental distress and more than $47,000.00 in attorney fees. Barbara Carle was a […]