Following the Credit Union’s purchase of the house, two occupants residing in the house at the time of the purchase were given notice that if they did not voluntarily move from the premises, they would be evicted.   Here, the residents did not move out, and a complaint for eviction was filed with the court.   The court […]

Debtors attempt to cram-down secured loan to “unsecured” status after debtor’s Chapter 13 Confirmation Hearing was denied by Court. Here, debtor owed a loan to creditor secured by one Mercury automobile. Debtor’s Chapter 13 repayment plan proposed to cram-down the obligation to the fair market value of the vehicle and repay creditor only $1,125, plus […]

Credit Union Violates Truth in Lending Act, but Court denies co-borrowers Right of Rescission of mortgage, as mortgage was not on co-debtors’ primary residence.    Here, the Coxes (Borrowers) were indebted to Knox County School Employees Credit Union. Debtors wanted to borrow additional funds from the credit union to be secured by their residence.   Debtors did […]

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

In this case, debtors 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 to Hancock of approximately $6,800 was […]

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 […]