French v. Security Seed and Chemical, Inc. (In re French)

(W.D. Ky. April 25, 2017)

The district court affirms the bankruptcy court’s judgment finding the debt owed to the creditor was nondischargeable under 11 U.S.C. § 523(a)(2)(B). The court holds the bankruptcy court’s decision was not clearly erroneous, as the evidence supported a finding that the debtor obtained a loan from the creditor based on a written statement that was materially false as to the debtor’s financial condition. The court also affirms the bankruptcy court’s finding that the creditor did not obtain a lien on personal property of the debtor when the sheriff, following default judgment in the creditor’s favor prepetition, merely located property of the debtor rather than exerted control over the property. Opinion below.

Judge: McKinley

Attorneys for Debtor: King, Deep & Branaman, Harry L. Mathison, Jr.

Attorneys for Creditor: Thomas Arvin & Adams, James G. Adams, III, David E. Arvin

2017-04-25 – in re french

Author: Matt Lindblom

Community First Bank of Indiana v. Galyan (In re Galyan)

(Bankr. S.D. Ind. Apr. 13, 2017)

Following trial, the bankruptcy court enters judgment against the debtor, finding the loan debt owed to the bank is nondischargeable under 11 U.S.C. § 523(a)(2)(B). The court finds that the debtor made false representations with respect to his ownership interest in real property and the existence of a debt owed, which representations were reasonably relied upon by the bank when making the loan. Opinion below.

Judge: Carr

Attorneys for Plaintiff: Riley Bennett & Egloff, LLP, Anthony R. Jost

Attorney for Defendant: KC Cohen

2017-04-13 – in re galyan

Author: Matt Lindblom