Cloverleaf Development, Inc. v. Provence

Frank Holt, Justice.

This appeal results from the chancellor’s granting summary judgment in favor of appel-lees, ruling that the discharge in bankruptcy of their debt, scheduled as unsecured, was res judicata and barred a foreclosure action.

Appellees borrowed $18,283-35 from the appellant and executed a mortgage in December, of 1977 to secure their note for this amount. A first mortgage on the property in favor of Farm Home Administration was already in existence. Appellant did not file its mortgage. Approximately one year later, appellees filed a voluntary petition, in bankruptcy and listed…