In this case, the debtor borrowed substantial funds from Barnett Bank of Marion County as a long time customer without any account problems. The debtor’s continued good terms with the bank allowed him to obtain several loans. Each time the debtor borrowed money, the bank required the debtor to complete a new financial statement disclosing […]

Security State Bank of Hamilton issued a loan of nearly $17,000 to Jerry and Henrietta Marshall in exchange for the Marshall’s pledge of a security interest in the debtors’ new car. Debtors signed the promissory note and pledge of security. The bank’s personnel, however, failed to identify the pledged security on the Truth-in-Lending disclosure. Debtors’ […]

Here, in this case, the U.S. Federal Court of Appeals held that a collection attorney violated the Fair Debt Collection Practices Act (FDCPA) by writing a letter to the debtor stating that the debtor had failed to comply with payment arrangements. The creditor obtained a judgment against the debtor and the debtor was to make $20.00 […]

Here, debtor failed to prove “undue hardship” in order to obtain a discharge in bankruptcy for his student loan. This debtor owed less than $1,800 on a student loan at the time he filed a Chapter 7 bankruptcy and sought to discharge the loan and extinguish that liability. A debtor may discharge a student loan in […]

In this case, Janet Boyles was employed by Energy Family Credit Union as a loan processor. Boyles was discharged from employment and applied for unemployment compensation benefits. The Wisconsin Department of Labor and Industry ultimately denied the former employee’s request for compensation for the first seven weeks, and found that the loan processor was discharged […]

 The Bankruptcy Code provides, in part, that a student loan issued by a nonprofit institution, such as a credit union, and insured by the federal government, shall not be discharged in bankruptcy, absent a showing by the debtor(s) of true hardship. The Bankruptcy Code further provides that a Chapter 13 repayment plan may not unfairly […]

Fraudulent loan application results in Nondischargeable debt. In this case, two debtors applied for and closed on a mortgage with American General Finance, Inc. (hereinafter “American General”). The debtors represented to American General that they only had one mortgage on their residence. American General intended to grant the debtors a loan secured by a second […]

In this case, the credit union brought an adversary proceeding to determine dischargeability of a debt secured by a classic automobile, which the Chapter 7 debtor had dismantled into composite parts that he then sold. Here, debtor initially borrowed $6,000 from Moog Employees Federal Credit Union to finance the purchase of a 1970 Chevrolet Camaro Z-28, […]

In this case, the estate of a deceased credit union member brought suit to recover life insurance proceeds against the credit union and its group life insurer (CUNA Mutual) that issued a certificate of insurance to the member. Here, Mr. Hall applied for membership at HAPO Federal Credit Union. He completed the application, listing his occupation as […]

In this case, the lender’s Truth-in-Lending (TILA) disclosure provided that the borrowers were granting a security interest in the borrowers’ real estate and in all after acquired property as additional security for future advances. The mortgage document did not, however, contain the same language and did not grant a security interest to the lender in […]