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 […]

Here, the Ohio Court of Appeals ruled in favor of the Credit Union and held that a debtor’s attempt to avoid a security interest in bankruptcy actually survives the bankruptcy discharge. Here, the debtors borrowed money from the Credit Union and granted to the Credit Union a non-purchase money security interest in the debtors’ Ford […]

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 […]

In an earlier precedent setting ruling, the bankruptcy court held that a bank’s temporary freeze on its depositor’s accounts did not violate the bankruptcy court’s automatic stay in a Chapter 7 proceeding. Here, the Bank of Newport had a standing policy that upon notice of a checking account customer filing a Chapter 7 Bankruptcy, the funds on […]

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 […]

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 […]

Court denies reinstatement of lien denied in this case when CoreStates Bank inadvertently released a secured lien it held on debtor’s Mercedes automobile. The release took place after the debtor filed a Chapter 13 bankruptcy. CoreStates attempted to reinstate the lien and requested the bankruptcy court to enforce imposition of the mistakenly released lien. The bankruptcy court […]

In this case, the debtor executed a promissory note and security agreement granting Continental Bank a security interest in certain collateral which would also secure future advances. The agreement provides, in pertinent part: To secure payment of all loans made and to be made by the bank to borrower and to secure all other indebtedness […]

Here, the court held that the insurance company could not recover funds it paid to the Credit Union as an insured party on stolen collateral, even though the debtor’s insurance claim was fraudulent. The Credit Union was not aware the claim was fraudulent when it received the funds and was, therefore, entitled to those funds. […]

Credit Union Home Equity Mortgages and deeds-of-trust of any nature are generally junior in position to a first mortgage/lien holder. As such, the credit union can and should protect its Home Equity portfolio as securely as possible from collateral damage if a first mortgage proceeds into foreclosure. Question: Will the credit union receive a notice if the […]