In this case, a creditor obtained a state court judgment against Dodds and garnished her wages. The garnishment was issued by the state court prior to debtor’s filing bankruptcy. In addition, the garnishment was served and debtor’s employer withheld $214.78 from her wages. Eleven days after the funds were withheld from debtor’s paycheck, Dodds filed […]

Creditors must be aware that a bankruptcy filing by a principal debtor may not toll (delay) the Statute of Limitations to proceed against a non-bankruptcy co-debtor. The Credit Union in this case was prevented from collecting a deficiency amount owed and suffered a financial loss. This Court held that a Chapter 11 bankruptcy filing does not toll […]

Here, Blackstone Financial Services “Blackstone” held a loan with the debtor secured by debtor’s automobile. The loan was in default and Blackstone had a repossession order out on the collateral. Although Fisher filed a Chapter 7 bankruptcy, an individual allegedly from Blackstone, referred to here as Mr. Clemente, contacted Fisher by telephone and stated that […]

A creditor who improperly identified its secured interest on a vehicle title as the “owner” instead of a “lien-holder” was sufficient to perfect its security interest in the motor vehicle. In this case, the creditor, Microbank Companies Inc., the intended to place a lien on the debtor’s vehicle, however, creditor mistakenly designated itself on the […]

In the case,  a member of Austin Area Teachers Federal Credit Union (Austin Area) pledged her certificate of deposit at the credit union as collateral for her son’s note to First City Bank-Northwest Hills (First City). When the son defaulted on the loan, First City demanded the credit union release the pledged certificate of deposit to […]

In this case,  the credit union brought an action against Carol and Donald Phillips and their seventeen year old son after the son stole a check from his parents, forged his mother’s signature and made the check payable to himself. The son then presented the check to the credit union and obtained $2,200. Most states have statutes […]

Co-Signer’s Probate Estate Claim allowed even though primary Debtor agreed to repay loan 100% through Chapter 13 Bankruptcy Plan. Here, Callaway Bank issued a loan to Ralph Case who later filed a Chapter 13 bankruptcy. The loan was cosigned by Ruth Trammell, who passed away prior to Case’s filing for bankruptcy. The bank filed a motion […]

In some jurisdictions, but not in Michigan, Bankrupt debtors must either redeem, reaffirm or surrender the collateral and cannot keep the collateral and otherwise continue making payments. When a debtor files a Chapter 7 bankruptcy, the Bankruptcy Code provides that the debtor(s) must either: 1) “reaffirm” their secured obligations and keep the collateral pledged on the […]

The Sixth Circuit Court has ruled that the Fair Debt Collection Practices Act (FDCPA) does not require an attorney to send a collection letter to the borrowers before a creditor files suit against the borrower(s).   In this case, the creditor’s attorney did not send a demand letter to the debtor prior to filing suit. Here, the Sixth Circuit additionally ruled that […]

In this case, Robert Schultz and his wife owed more than $15,000 to Hancock Bank on a loan secured by debtors’ Chevrolet Caprice. The amount owed was not in dispute. Debtors’ Chapter 13 Plan proposed to repay Hancock Bank the value of its security, which was listed at $8,175. The balance of the funds owed […]