On October 24th, 2016 Judge Janet Baer issued her opinion on Adversary 15 A 00550 (Click for Details). The plaintiff, Chicago Patrolmen’s Federal Credit Union filed a complaint with the Federal Bankruptcy Court, asserting the client’s debt was not dischargeable; pursuant to rule 523(a)(2)(B). Peter Francis Geraci and Geraci Law Attorneys disagreed.
The plaintiff claimed the debt was not dischargeable because the client obtained a second loan from the Chicago Patrolmen’s Federal Credit Union under false pretenses and intended to deceive Chicago Patrolmen’s Federal Credit Union.
After a 1 day trial, in Federal Court, Judge Baer disagreed with the Plaintiff. In her 18 page opinion, Judge Janet S. Baer ruled the Plaintiff failed to meet their burden of proof. Failing to prove the fourth element in a claim under 523 (a)(2)(B), by a preponderance of the evidence. Namely, the debtor intended to deceive Chicago Patrolmen’s Federal Credit Union when obtaining a second loan.
Instead, the evidence presented in the case proved Geraci’s Client didn’t act with a reckless disregard when applying for the loan and did not try to deceive the Credit Union. The court determined Geraci Law’s client testified credibly when she believe she could pay the loan taken from Chicago Patrolmen’s Federal Credit Union. Attorney Ryan Fojo, who tried the case for Geraci Law, presented a credible case; with facts to support the client’s position.