Nash-Bone v. Ramey (In Re Ramey)

MEMORANDUM OPINION

STEPHEN S. MITCHELL, Bankruptcy Judge.

This is an action to determine the dis-chargeability of a debt arising from a $50,000 loan made by the plaintiff, Anne Nash-Bone, to the defendants, James L. Ramey and Barbara A. Ramey. Although the loan was secured by a deed of trust against a townhouse owned by the defendants, the deed of trust was not recorded, and the townhouse was sold about two months later without repayment of the loan. Later, Ms. Nash-Bone agreed to extend the time for payment on the debtors’ agreement that the loan would continue to be “backed” by the deed of…