Legal News for Credit Union Managers Since 1990

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08
Jan
2024

Credit Union Violates Automatic Stay by Transferring Automatic Payments

Here, in the case of In re Krivohlavek, (8th Cir. BAP), Debtor, Terri Krivohlavek, filed a Chapter 7 bankruptcy petition with a Statement of Intentions to surrender one 2002 Ford Windstar that was pledged as collateral to Boys Town Federal Credit Union. Prior to the bankruptcy filing date, Debtor paid her secured loan at the Credit […]

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05
Jan
2024

Mortgaged Property Kept Without Reaffirmation or Redemption

Here, the Court considered whether a debtor may keep property secured by a mortgage to the credit union even if the debtor does not either reaffirm, surrender or redeem the obligation.   In this case, GNC Credit Union held a mortgage issued by the debtors and secured by their home. The balance on the loan was […]

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03
Jan
2024

Credit Union Employee: Failure-to-Promote

Here, a Federal Court granted the credit union’s motion for summary judgment and dismissed Plaintiff’s claim that the credit union had discriminated against her by failing to promote her to a higher position. This case had traveled extensively throughout various federal courts and was previously sent back to this court from the U.S. Supreme Court. In […]

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02
Jan
2024

Bankruptcy Redemption Requires Lump-Sum Payment

Bankrupt Debtor may only redeem collateral in one payment. Redemption installment payments prohibited if debtor elects to retain vehicle.     Here, debtor sought to redeem Ford Motor Credit collateral by paying installment payments for the value of the vehicle, instead of one lump-sum redemption payment. Section 722 of the Bankruptcy Code provides, in pertinent part: An individual debtor may, whether or not the […]

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01
Jan
2024

Wrongful Transfer of Property

In this case, the bankruptcy court denied debtors’ discharge after debtors transferred property, without consideration, to close friends and relatives with the intent to hinder, delay or defraud creditors. Here, debtors filed a Chapter 7 bankruptcy and a creditor filed an adversary complaint with the court seeking to deny debtors’ discharge. The creditor’s complaint alleged […]

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29
Dec
2023

Deficiency Judgment: Fatal Error

In this case, a credit union member obtained two loans from L.C.E. Federal Credit Union secured by his Jeep Comanche and Mazda RX-7. The loans went into default and both vehicles were repossessed by the credit union. Thereafter, the credit union sent a notice to the debtor advising him that the vehicles would be sold at […]

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27
Dec
2023

Student Loan: Preferential Status Denied

A Chapter 13 bankruptcy debtor attempted to confirm a plan that provided for 40% repayment on unsecured student loans and only 8% repayment on all other unsecured loans. The debtor created two classes of unsecured loans and provided unequal repayment between the student loans and all other general unsecured creditors. Often, if the debtor can […]

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26
Dec
2023

Garnishment Funds: Property of Bankruptcy Estate

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 […]

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22
Dec
2023

Bankruptcy: No Tolling Statute of Limitations On Co-Maker

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 […]

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21
Dec
2023

Malicious Violation of Automatic Stay

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 […]

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  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Temporary Freeze on Member Deposits
    • Reopening Bankruptcy Case Denied
    • Attorney Fees Assesses Against Bankrupt Debtor
    • Holder in Due Course – Checks
    • Automatic Stay Violation: Costs Assessed Against Credit Union
    • Credit Union Lien Survives Chapter 7 Discharge
    • Mechanics Lien Extinguished Credit Union Security Interest
    • Fatally Defective Mortgage Acceleration Notice
    • Defective Notary: Mortgage Void
    • Debtor’s Irresponsible Debts Discharged
    • Discharged Loan Re-Written Is Unenforceable

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