Here, the debtors proposed a Chapter 13 reorganization plan that included a $150.00 voluntary charitable payment to a church per month and another $30.95 per month for cable television. Fort Eustis Federal Credit Union timely objected to the debtors’ payments above. However, the Bankruptcy Court confirmed the debtors’ plan over the credit union’s objections. The credit union […]

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

Here, the court addressed the issue as to whether a job applicant was discriminated against due to the applicant’s obesity. In this case, the job applicant applied for a position with the employer and was rejected due to her obese weight.   The medical profession considers a person morbidly obese if the individual weighs either more […]

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 mortgage; American General obtained a title search […]

Discrimination Suit awards five-years wages to employee for wrongful discrimination against employee. Here, an employee of  Peoples National Bank of Washington prevailed in a discrimination action against the bank for failure to promote the employee. The employee was a Cambodian born and highly educated individual. The employee had special training in speaking English, served in the U.S. […]

Here, the U.S. Bankruptcy Court held that a debtor’s issuance of some $8,784.00 of worthless non-sufficient fund (NSF) checks would be  nondischargeable in bankruptcy. In this progressive case for creditors, the court found that debtor’s tender of five nonsufficient fund checks (NSF) constituted fraud by the debtor. The debtor tendered said checks to Supercom in exchange for debtor’s […]

In this case, the bankruptcy court dismissed debtor’s Chapter 7 bankruptcy after discovering the debtor had previously titled his property jointly with his wife, who did not file bankruptcy. The debtor sought to keep all of his property through the joint ownership with his wife and utilization of the Bankruptcy Code exemptions. Although the bankruptcy […]

Minneapolis Telco Credit Union violated employee rights with “constructive discharge” in violation of Credit Union Employee’s Civil Rights.   In this case the appellate court affirmed a determination of the Commission of Civil Rights, finding that Minneapolis Telco Credit Union [Telco] violated its employee’s civil rights. Here, Deborah Witherspoon was employed at Telco when she learned that she had […]