In Re Larry Modicue and Wanda Nelson Modicue, Debtors. Friendly Finance Service Mid-City, Inc. v. Larry Modicue and Wanda Modicue

I

Friendly Finance (Friendly) appeals the district court’s judgment affirming the bankruptcy court’s determination that only the value of the collateral unlawfully sold by Mr. and Mrs. Modicue, not their total debt to Friendly, was non-dischargeable under 11 U.S.C. § 523(c). We affirm.

II

Friendly made a loan to Mr. and Mrs. Modicue for which they executed a promissory note and a chattel mortgage securing the note. The mortgaged items, although worth $1,300.00 at the time the mortgage was executed, were sold without Friendly’s knowledge or permission at a rummage sale for approximately $120.00.…