Butt v. Hartford Insurance (In Re Butt)

OPINION AND ORDER

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

Prior to the filing of their Chapter 7 proceeding, the PLAINTIFFS owned and operated Avon Grain Company (AVON). On December 21, 1981, the PLAINTIFFS signed an Indemnity Agreement with the DEFENDANT, agreeing to indemnify the DEFENDANT for any payment it might be required to make on AVON’S warehouse bond issued by the DEFENDANT, and on December 28, 1981, the DEFENDANT issued the warehouse bond. AVON experienced financial difficulty, and on February 7, 1984, the PLAINTIFFS, f/d/b/a AVON, filed a Chapter 7 proceeding. In their Statement…