The two cases below held that the Bankruptcy Code section exempting “student loans” from discharge in bankruptcy, does not apply to student loans issued from credit unions. The first case of TI Federal Credit Union vs. John Delbonis, involved a debtor who, in a four year period, obtained more than $43,000 from TI Federal Credit […]

In a Pre-$250,000.00 deposit insurance coverage case, the issue was how one depositor deposits were combined, thereby avoiding insurance coverage. This type of ruling below could also apply to the current $250,000.00 coverage limits as to the combination of account deposits. In Waukesha State Bank et al. v. National Credit Union Administration Board (U.S. Court […]

In the case of Educational Employees Credit Union v. Mutual Guaranty Corporation (U.S. District Court, E.D. Missouri, No. 4:92CV1016), Educational Employees Credit Union formerly maintained deposit insurance with Mutual Guaranty Corporation of Tennessee. The credit union cancelled said insurance with Mutual Guaranty when Missouri law required it be insured through NCUSIF. The credit union had […]

Introducing our New Features and Search Options for the Credit Union Legal Newsletter • Search features are all FREE! • Search our legal articles by Topic • Search our legal articles by Key Words • Read our legal articles all for FREE! Use the Search Box on the top right-hand corner of any page on […]

Former Credit Union CEO/Manager loses suit for wrongful termination of employment, breach of contract and for age discrimination.  A jury did, however, award the plaintiff for accumulated “compensatory time.”   In this case, Sue Adams was employed at the credit union as the manager and CEO. Adams began having heart problems and underwent balloon angioplasty surgery. Shortly […]

National Apr 18, 2009, 18:01 In William Barnhill v. Elliot Johnson (No. 91-159), the United States Supreme Court held that the actual date a check is presented to the drawee bank will be the effective date to determine whether the transfer may be set aside by a trustee in bankruptcy. Under the Bankruptcy Code’s preference, […]

By Charles R. Harroun, Attorney at Law Chapter 7 Bankruptcy Dismissed for substantial abuse. In this case, the issue was whether debtor’s Chapter 7 bankruptcy should be dismissed since debtor appeared to have the ability to repay his obligations. Debtor was employed as a sportscaster earning about $170,000 per year; debtor had unsecured debts of […]

In one of the last opinions issued by U.S. Supreme Court Justice Marshall, the Supreme Court held, in the case of Curtis Johnson v. Home State Bank (111 S. Ct. 2150) 1991, that a creditor’s secured home mortgage loan survives a debtor’s Chapter 7 filing for bankruptcy. Here, the debtor defaulted on a promissory note […]