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

Central Engineering & Construction Associates, Inc. v. Holcim (US), Inc. (In re Central Engineering & Construction Associates, Inc.)

(Bankr. S.D. Ind. Mar. 16, 2015)

The bankruptcy court grants summary judgment in favor of the debtor, holding the creditor does not have a security interest in personal property of the debtor. Prepetition, the creditor obtained a judgment against the debtor and filed a financing statement with the Indiana Secretary of State claiming the creditor had a security interest in the debtor’s personal property by virtue of the judgment. The bankruptcy court concludes that under Indiana law, in order to create a lien on personal property, a judgment creditor must issue and levy on execution. The judgment itself did not give rise to a lien. Opinion below.

2015-03-16 – in re central engineering

Author: Matt Lindblom