General Electric Credit Corp. v. Graham (In Re Graham)

OPINION AND DECISION

BERT M. GOLDWATER, Bankruptcy Judge.

These consolidated adversary cases were filed by General Electric Credit Corporation (GECC) to have a collateral deficiency in its flooring inventory declared nondischargeable in the personal bankruptcies of Mr. and Mrs. Elmer Graham (Grahams) and Richard Blonigan (Blonigan) who were the chief stockholders, officers and directors of Graham & Blonigan, Inc. doing business as Bates & Bell T. Y. & Appliances (B&B).

On March 2, 1979, B&B signed a security agreement with GECC which provided that all inventory would be subject to a security…