The Michigan Supreme Court has held that the Credit Union is protected as a secured party under the “loss payable” clause of an insurance policy, even if the Credit Union member burned the collateral and made false statements to the insurance company on its claim of loss. Here, the Credit Union member executed an installment note with State Employees Credit Union secured […]

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 […]

In this case, an Ohio court awarded $15,000 against a credit union and its attorney, as well as ordering the credit union to pay debtor’s attorney fees in excess of $7,000. Here, the debtor filed a Chapter 7 bankruptcy and listed his debts to Champion Credit Union with the bankruptcy court. The credit union received […]

Credit Union Notice of Sale of Collateral was fatally defective and Court denied recovery of deficiency balance due to defective Notice of Sale. In this case, the debtor entered into an open-ended credit plan and security agreement secured by the debtor’s Lincoln automobile. The debtor’s loan went into default and the Credit Union repossessed the […]

In this case, the credit union brought an adversary proceeding to determine dischargeability of a debt secured by a classic automobile, which the Chapter 7 debtor had dismantled into composite parts that he then sold. Here, debtor initially borrowed $6,000 from Moog Employees Federal Credit Union to finance the purchase of a 1970 Chevrolet Camaro Z-28, […]

Most of our fifty States have adopted the Uniform Commercial Code (UCC), which prescribes the method for a creditor to perfect security interests in collateral. Credit unions utilize the UCC filing provisions to perfect their security interest in items pledged as collateral on a loan, such as on a vehicle. Once a creditor files the […]

Bank of the Mountains granted a loan to debtors secured by a second mortgage on debtors’ primary residence. Debtors filed a Chapter 7 bankruptcy, which was later converted to a Chapter 13 case. Debtors listed the bank as an unsecured creditor since the value of their residence was less than the balance owing on the […]

In this case, the Court addressed whether the prohibition against transfers to creditors prior to the bankruptcy filing begins from the date of transfer, or runs backward from the date the bankruptcy is filed. Here, the creditor obtained a judgment lien against the debtor’s property 90 days before the date of the filing of the debtor’s […]

Here, the debtor owed more than $3,900 to ITT Financial Services on a loan secured by various items of personal property, including a Pentax Camera and lens, snowblower, color television set, VCR, stereo system, a gun, power saw and an electric guitar. The initial debt was refinanced several times by the debtor and on each […]

A “cram down” in a Chapter 13 plan proposes repayment to the creditor of only the actual value of the collateral. Here, the debtor attempted to cram down a secured loan with an interest rate on the unpaid balance of less than the original contract rate and less than the prime rate of interest. Debtor’s […]