Preferential Transfer: “Time” of Transfer adopted. — On September 11th, a garnishment was filed on debtor’s savings account; — On September 17th, a garnishment order to pay was issued by the court; — On September 19th, garnishee defendant received the order to pay; — On September 27th, funds were paid to the court by the […]

In this case, Dutch Point Credit Union challenged the sale of its collateral by a mechanic’s shop that resulted in extinguishing the credit union’s perfected lien. The credit union granted a loan secured by debtor’s Datsun automobile. The credit union properly placed its lien on the vehicle. After the loan was granted, the vehicle was in an […]

 Here, debtors failed to keep adequate records of their finances, and consequently the court denied their discharge. The debtors’ Statement of Financial Affairs indicated that they were principals in nine corporations. Some of the corporations were inactive, however, debtor, Mr. Vetri testified that he was unable to locate any of the business records of the […]

In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, […]

In this case, Wachovia Bank of North Carolina held a mortgage on environmentally contaminated property. The mortgage went into default and the bank foreclosed on the property, purchasing the property at the sheriff’s sale. The bank then sold the property to purchasers who later sued the bank since the property was contaminated. The Comprehensive Environmental […]

Here, the U.S. Bankruptcy Court ruled that a creditor’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. In this case, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

In Cincinnati Central Credit Union vs. Yuvonne Goss et al., this Ohio court noted that this case presents a common occurrence in the world of banking and one which the courts can resolve equitably. Here, one Terrence Fitzgerald made payable his check for $4,000 to New Look Auto Trim and Upholstery and delivered it to […]

This Bankruptcy Court held that the debtor must pay creditor’s attorney fees after the creditor prevailed in a complaint for nondischargeability. A Chapter 7 bankruptcy frees the relieves the debtor from all prior personal obligations.  However, the policy “underlying bankruptcy law entitles only honest debtors to the fresh start” after discharge. If a debt results from […]

Credit Union held in Contempt of Court for failure to stop automatic payroll deductions upon debtor filing for bankruptcy. The debtor was on automatic payroll deduction to MFA Employees Credit Union for an unsecured loan. Debtor filed a Chapter 7 Bankruptcy but debtor did not cancel the payroll deductions for the credit union loan payments. The credit […]

Defective Notice of Right to Cancel results in Truth in Lending Violation and extends borrowers right to rescind. Here, New Maine National Bank granted a loan to the debtors secured by debtors’ residence. At the closing of the loan, the loan officer supplied the debtors with a “Notice of Right to Cancel” (hereinafter “Notice”). Pursuant to the […]