Author Archive

Love, Trust & Faith –When you are presented with a one-eyed horse – you need to look at the horse more closely.

June 21, 2017


  • Two individuals, married to others, who work together fall in love.
  • Man continues to tell the woman that he will get a divorce and when questioned – When? – he replies you must have “LOVE, TRUST AND FAITH”.
  • Tells her that he needs money to clear up his debts in order to get a divorce.
  • Promises continually and eventually woman gave $275,000.00 to him as they were newly-in-love and she must believe in his “LOVE, TRUST AND FAITH” concept.
  • Man gets a new job so that their relationship doesn’t affect their jobs.
  • Man uses woman’s charge accounts and she sees that he charged a trip with his wife and furniture for his home.
  • Man disappears and cannot be found; says woman changed (might be tied to the fact she is putting his feet to the fire?)
  • Man Files for Chapter 7.
  • Woman files an adversary proceeding so that his debt to her is non-dischargeable.

Continue reading…

Chapter 7 Debtor Destroys Borrowed Car – Dischargeable?

June 19, 2017



  • Worked for a Dealership and drove one of the dealership’s cars home without permission
  • Felt her car was not safe to drive.
  • Drove car back to work and was involved in a multi-vehicle accident; car was totaled.
  • Pleaded guilty to unauthorized use of a vehicle and ordered to pay restitution.
  • Filed for Chapter 7 Bankruptcy.
  • Dealer filed adversary proceeding to state that the claim for restitution was not dischargeable.

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Debtors (outside of Bankruptcy) Pay Personal Loans First – Do You?

June 13, 2017

When we study the dynamics of debtors who do not have enough money to pay all creditors, it is interesting to note that personal loans were paid first.

The hierarchy that debtors pay their debts was found to be as follows:

  1. Personal Loans
  2. Auto Loans
  3. Mortgages
  4. Credit Cards

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Attorney Deceives Client – Tries Chapter 7 to “Wiggle out of the Debt”

June 12, 2017


  • Client was seriously injured in an accident in 2008; hires Attorney #1 who failed to file the Complaint within the required time frame.
  • Client then hires Attorney #2 to file a malpractice claim against Attorney #1.
  • Attorney #2 did not file the malpractice case within the required time frame and client’s case was dismissed.
  • December 2011, Attorney #2 met with his client after she assured him that she would not hire a 3rd attorney to file malpractice against him.
  • Attorney #2 advised that he had no malpractice insurance and had no money; he offered the client a promissory note in the amount of $275,000 plus attorney’s fees of up to 25% of the value of the note.
  • Attorney #2 advised that one of his cases was paying out shortly; she had 5 years to collect on the note.
  • Client accepted the “deal”.
  • June 2012, client filed a disciplinary action against Attorney #2.
  • November 2013, client sued Attorney #2 to collect on the note.
  • February 2014, Attorney #2 filed for a Chapter 7 bankruptcy and client filed an adversary proceeding for the note to be non-dischargeable.

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Restitution Obligation Not Dischargeable

June 4, 2017


  • Debtor was convicted of stealing money from his employers.
  • Restitution was set at $196,691.
  • Debtor filed for Chapter 7 Bankruptcy.
  • Employer filed an adversary proceeding since the Debtor was trying to discharge the restitution obligation.
  • The Debtor admitted he was charged with and pleaded guilty to criminal theft and ordered to pay restitution.
  • Debtor denied that the Restitution Order was non-dischargeable.
  • Debtor appealed Bankruptcy Court’s ruling that the debt was non-dischargeable.

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Riding Mower Was Not a Lawn Tractor – Bad News for the Creditor

May 9, 2017


  • Debtors borrowed money from a creditor to purchase a 41” John Deere Riding Lawn Mower.
  • Debtors filed for a Chapter 13 Bankruptcy and wanted to file a Motion to Avoid the Lien on the John Deere Mower.
  • Debtors felt the lien on the mower impairs their exemptions and it is personal property not a recreational vehicle, motor vehicle or tractor.
  • Creditor presented that the John Deere Riding Lawn Mower was a motorized vehicle which attachments could be placed on the mower and thus is a motor vehicle/tractor which cannot be exempted.
  • Creditor also stated that it was not a personal item that could be used only for cutting grass but also could be used to haul or power implements.

Continue reading…

Amending Schedules Does Not Hide You Lied

April 30, 2017


  • Debtors filed for Chapter 7 bankruptcy.
  • Debtors did not list 2 inoperable trucks that they owned; debtors’ claimed these trucks at the time of the petition were property of deceased father.
  • Changed their schedules when the two trucks were questioned; amended their schedules to include one truck.
  • Plaintiff, former landlord of Debtors, evicted Debtors and objected to the Debtors’ discharge. Continue reading…
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