Here, the Chapter 7 Debtor made voluntary payments to creditor after debtor’s filing for bankruptcy. Both debtor and creditor agreed that the post-petition payments would be applied to prepetition debts owed to the creditor. The debtor made more than $39,000 of voluntary payments to creditor.   Some two years after the voluntary payments were made, […]

In this case, the Chapter 13 debtors moved to hold Idaho Central Credit Union in contempt for allegedly violating the Bankruptcy Court’s automatic stay after the credit union froze members’ funds on deposit. Debtors also sought sanctions against the credit union for the alleged violation. The credit union responded by contending it did not violate the […]

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 […]

Here, Progressive Credit Union was held liable for more than $158,000.00 when the credit union granted a secured loan to a member and did not pay off a prior lienholder.  The appellate court found the credit union liable to the former lienholder. When Progressive Credit Union granted this loan, it searched the county and state lien records and […]

Here, Dutch Point Credit Union’s perfected security interest was extinquished upon the sale its collateral by a automobile repair facility.    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 accident during the same year.   […]

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. Here, an obligation to the creditor was guaranteed by another party. The principal debtor filed bankruptcy and proposed to “cram down” the obligation to the creditor. Creditor filed an action against the guarantor […]

Chapter 7 Bankruptcy Dismissed for Substantial Abuse and Bad Faith filing due to Debtors’ Excess Income.  Debtors’ excess estimated income over expenses defeated debtor’s Chapter 7 Bankruptcy.  Here, debtors’ bankruptcy schedules identified their residence as valued at $80,000, with two mortgages totalling $77,000. Debtors also listed two vehicles valued at $40,000, with secured liens of approximately $46,000 against […]

ISSUE:  Whether a mortgagee bidding total debt at foreclosure sale can recover post-foreclosure advances for repairs and/or improvements through a deficiency action against mortgagor. CONCLUSION: A mortgagee (Lender) cannot pursue a mortgagor for a deficiency arising from post-foreclosure advances expended to repair or improve the premises. When a mortgagee makes a full credit bid for […]

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 […]

In this case, debtor filed a Chapter 13 case which sought to discharge, among other debts, an obligation that was previously held nondischargeable in a Chapter 7 bankruptcy filed several years earlier.   The debt that was found to be nondischargeable in the Chapter 7 case was due to a check written by the debtor […]