Federal Finance Co. v. Merkel

This action was commenced by plaintiff, Federal Finance Co., Inc., as payee of a promissory note, to recover judgment against defendants Jacob and Alice Merkel, husband and wife, makers of the note. The Merkels’ defense was a discharge in bankruptcy. Federal Finance asserted the bankruptcy discharge could not be interposed as a defense because a false financial statement was made by the Merkels in connection with the renewal and an increase in the amount of the loan made by Federal Finance and covered by the note which is the subject of this lawsuit. Federal Finance relies upon recent…