McMahan's of Alhambra v. Casselli (In Re Casselli)

OPINION

JAMES R. DOOLEY, Bankruptcy Judge.

This case presents two interrelated questions:

1. To what extent does plaintiff hold a security interest in the items that defendants purchased from plaintiff?

2. To what extent is plaintiff entitled to a return of the items that defendants purchased, or a nondischargeable judgment for their value?

FACTS

On or about March 27, 1977 plaintiff entered into a Revolving Charge Account Agreement with defendant Lynn M. Cassel-li. Later, on or about September 13, 1977 plaintiff entered into another Revolving Charge Account Agreement with defendant Lynn M.…