James Cockhren v. MidWestOne Bank

James and Margaret Cockhren obtained a secured loan from MidWestOne Bank in 2003. The Bank commenced foreclosure on the mortgaged property in December 2010; the Cockhrens counterclaimed alleging failure to comply with federal Truth in Lending Act (TILA) requirements. The state court granted foreclosure, and the Supreme Court of Iowa affirmed.

The Cockhrens filed a Chapter 7 bankruptcy case in March 2011; one asset was their claims against the Bank. The trustee entered into a settlement releasing the estate’s claims against the Bank and its employees and agents. The bankruptcy court approved…