Maddox v. Southern Discount Co. (In Re Maddox)

OPINION

WILLIAM L. NORTON, Jr., Bankruptcy Judge.

Prior to the filing of their petition, the debtors herein, Joseph Thomas and Mary Nell Maddox, obtained a loan from the defendant, Southern Discount Company. As security for the debt, Southern Discount was given a security interest in certain of the debtors’ household goods. None of the loan proceeds were used to buy any of the items in which the debtors gave Southern Discount a security interest. On September 22, 1980, the debtors filed a petition under Chapter 7 of the Bankruptcy Code. At that time their loan balance was $600.00. The value of…