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 […]

In the case of Union Bank & Trust v. Elmore County National Bank (Supreme Court of Alabama, Case No. 1900804), the Union Bank’s loan to a debtor resulted in a $10,900 loss. Here, Union Bank issued a loan to one Bill Burnette in the amount of $10,900 for the purpose of purchasing a Dodge Caravan. […]

Borrower moving collateral to another State dissolved security interest when creditor did not file a financing statement in Georgia within four months after the debtor moved to that state. Facts: 1. Debtor, Specialty Contracting and Supply Company, granted a security interest in its equipment, among other items of collateral, to one Richard Fraley; Fraley was an officer […]

Creditor retains garnishment funds received within two weeks before debtor filed bankruptcy. Court ruled in this case that date garnishment was “served” on garnishee defendant placed garnished funds outside of 90-day window for Trustee to set aside transfer to creditor. Here, the bankruptcy trustee sought to compel First of America Bank to return garnishment funds received […]