Community Credit Union v. Conte (In Re Conte)

In this case arising out of a Chapter 7 proceeding, Community Credit Union (“Community Credit”) challenges the district court’s affirmance of the bankruptcy court’s Order ruling that Community Credit does not have a valid hen on Kenneth J. Conte’s (“Debtor”) automobile. For the reasons stated herein, we REVERSE.

BACKGROUND

In May 1992, Debtor borrowed money from Community Credit to purchase a used 1989 Cadillac Sedan Deville. As part of this transaction, Debtor executed a one page LoanLiner Note and Disclosure Statement 1 (“Note”) pledging the car as collateral. The front-side of the Note…