Hopkins v. Idaho State University Credit Union (In Re Herter)

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

Introduction

During the pendency of her Chapter 7 1 bankruptcy case, debtor Nichole Herter (“Debtor”) transferred an interest in a jointly-owned Pocatello home (the “Property”) to her ex-husband, David Herter (“Herter”). Herter, who had recently completed his own chapter 7 case, then refinanced the existing second-position mortgage on the Property with Idaho State University Credit Union (“ISUCU”; collectively, Herter and ISUCU are the “Defendants”), thereby paying off the foreclosing, first-position secured lender, and executing a new…