Case Conclusion Date:May 28, 2008
Practice Area:Bankruptcy / Chapter 7
Outcome:Published Decision - Win For Client
Description:Mortgage broker prepared a loan application with income figures far greater than borrowers true income. Borrowers trusted mortgage broker and signed the application without reading it. Later when the borrowers filed chapter 7 the bank contested the discharge on the basis that the false application was fraudulent. The court found the bank did not rely on the figures in the application and did nothing to verify the information. The court noted the bank obtained its own appraisal. The claim discharged was for $250,000.