Universal Bank, N.A. v. Marvel (In Re Marvel)

Memorandum re Sanctions

ALAN JAROSLOVSKY, Bankruptcy Judge.

I. Introduction

Low- and middle-income debtors who are sued by credit card issuers over dis-chargeability do not face an even playing field. Such creditors are required to show actual fraud before they are entitled to judgment. However, a debtor who wishes to stand on his rights risks disaster if he or she loses the case. Credit card issuers usually take the position that, pursuant to Cohen v. de la Cruz, 523 U.S. 213, 219, 118 S.Ct. 1212, 140 L.Ed.2d 341 (1998), they are entitled to add on contract rate interest and attorneys’ fees if…