Creditor’s Contested Proof of Claim Allowed in Full
Gentry Locke for the Creditor.
United States Bankruptcy Court for the Western District of Virginia
Gentry Locke attorneys represented an unsecured creditor in a Chapter 13 bankruptcy case. Our client was the liquidating agent for a former credit union. Our client filed a proof of claim for unjust enrichment based on an undocumented loan to the bankrupt debtor. The liquidated credit union failed as a result of fraud committed by two former executives, who have since pled guilty to federal criminal charges. One executive was the debtor’s mother-in-law.
Debtor objected to the claim stating he never received the proceeds of the loan and never benefitted from it. He claimed he was a victim of his mother-in-law’s fraud.
Following an evidentiary hearing, the Court denied the debtor’s objection to the claim and allowed the claim in full.
The matter was tried and the Court found in our client’s favor.