Bank-Fund Staff Federal Credit Union held a mortgage on debtors’ real estate.  The loan was in default and the credit union sought to foreclose and obtain possession of the property. The credit union initiated foreclosure proceedings and sent a Notice of Foreclosure Sale to debtors. The foreclosure notice, however, erroneously stated that the members did […]

Here, a state court judgment found the debtor liable for fraud. Although the federal court has exclusive jurisdiction as to determining dischargeability in bankruptcy, the federal court nevertheless found the debtor was precluded from refuting the state court judgment. Hence, the debtor could not collaterally attack the state court judgment in federal court, and the […]

In this case, the Federal Court held that a guarantor on a loan is not excused from liability even when the principal debtor files bankruptcy. In this case, an obligation to the creditor was guaranteed by a third-party. The principal debtor filed bankruptcy and proposed to “cram down” the obligation to the creditor. Creditor filed an action […]

Here, the debtor owed more than $3,900 to ITT Financial Services on a loan secured by various items of personal property, including a Pentax Camera and lens, snowblower, color television set, VCR, stereo system, a gun, power saw and an electric guitar. The initial debt was refinanced several times by the debtor and on each […]

In this case, a member of First Railroad Community Credit Union, Clark Crapps, held accounts at Columbia County Bank [Columbia] and Florida’s 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 allowed immediate credit on deposits made to […]

Here, debtor purchased more than $1,100 of collector Barbie dolls and accessories within 40 days of filing for bankruptcy. Debtor sought to discharge these debts to the creditor who issued the credit card upon which the charges were placed. Creditor filed an adversary complaint with the Bankruptcy Court claiming that these Barbie doll purchases were “luxury […]

Debtor’s attempt to re-open his bankruptcy case was denied by the Court when debtor asked to reopen his bankruptcy case fourteen months after the case was closed.   The debtor sought to reopen the case and add an additional creditor which had not been listed in the initial case. The bankruptcy court applied the “doctrine of laches”, which prohibits an […]

In this case, the debtor executed a promissory note and security agreement granting Continental Bank a security interest in certain collateral which would also secure future advances. The agreement provides, in pertinent part: To secure payment of all loans made and to be made by the bank to borrower and to secure all other indebtedness […]

Bankrupt Debtor may only redeem collateral in one payment. Redemption installment payments prohibited if debtor elects to retain vehicle.     Here, debtor sought to redeem Ford Motor Credit collateral by paying installment payments for the value of the vehicle, instead of one lump-sum redemption payment. Section 722 of the Bankruptcy Code provides, in pertinent part: An individual debtor may, whether or not the […]

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 […]