(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.
Attorneys for Debtor: King, Deep & Branaman, Harry L. Mathison, Jr.
Attorneys for Creditor: Thomas Arvin & Adams, James G. Adams, III, David E. Arvin