In re Hamilton, Bankruptcy No. 7-81-00367

Decision Date18 May 1982
Docket NumberBankruptcy No. 7-81-00367,Adv. No. 7-82-0105.
Citation21 BR 487
PartiesIn re William P. HAMILTON, Jr., Debtor. William P. HAMILTON, Jr., Plaintiff, v. ROANOKE ELECTRIC STEEL FEDERAL CREDIT UNION, Defendant.
CourtU.S. Bankruptcy Court — Western District of Virginia

Ross C. Hart, Roanoke, Va., for debtor/plaintiff.

Jeffrey H. Krasnow, Roanoke, Va., for defendant.

H. CLYDE PEARSON, Bankruptcy Judge.

The issues before the Court are:

(1) Is the Defendant's debt discharged pursuant to 11 U.S.C. § 523(a)(3)(A) because although the Defendant was not listed had actual knowledge of the Debtor's petition?

(2) What is the redemptive value of the Kawasaki Motorcycle upon which the Defendant holds a lien?

The Debtor, William P. Hamilton, Jr., filed a petition in this Court on March 25, 1981, seeking discharge of his debts. The Defendant was not scheduled upon the schedule of creditors for the reason as stated by the Debtor that he desired to pay this debt to maintain a credit line and his inability to pay following termination of his employment at Roanoke Electric Steel resulted in a suit and judgment in a State Court by the Defendant credit union. Following the entry of this judgment on February 10, 1982, the Debtor brought this adversary proceeding to have determined the dischargeability of the Defendant's debt and to redeem the motorcycle in accordance with 11 U.S.C. § 722.

The Court heard the evidence as to the foregoing issues in which it appeared that the credit union office was located in the general office area of Roanoke Electric Steel Company, employer of the Debtor. It was undisputed that Roanoke Electric Steel office received notice of the filing of the Debtor's petition in this Court because an Order Releasing Garnishment lodged against the Debtor at the time of the petition was directed to and received by the office and employees of Roanoke Electric Steel, thereby releasing said garnishment from further withholdings; that shortly after the petition was filed, the Debtor was terminated and because of payments not being made discussed with a member of the credit union loan committee the problems of bankruptcy and the filing of the petition.

The Debtor positively testified that the credit union office personnel, as well as the member of the credit union loan committee one, Robert Saunders, had actual knowledge from the Debtor of the filing of the petition; that after being terminated, Saunders testified that he discussed the debt with the debtor but did not deny that the Debtor had advised him of the filing of the petition in this Court...

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