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Heartland State Bank v. Schlenker (In re Schlenker)

Heartland State Bank v. Schlenker (In re Schlenker)

Ruling
Second lien of credit obtained when debtor knew business was on verge of collapse was nondischargeable.
Procedural posture

Plaintiff creditor filed a complaint against defendant Chapter 7 debtor seeking a determination that two lines of credit obtained by a company, which were personally guaranteed by the debtor, were nondischargeable in the debtor's personal bankruptcy under 11 U.S.C.S. § 523(a)(2)(B). The creditor also sought a determination that certain credit card debt incurred by the debtor on a card issued by the creditor was nondischargeable.

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Consumer opinion summary, case decided on September 08, 2011 , LexisNexis #1011-089