Baumbaugh v. Los Angeles Morris Plan Co.

BEAN, District Judge.

This case involves the validity of a chattel mortgage given by the bankrupt, within four months pri- or to the adjudication, to the Los Angeles Morris Plan Company, to secure the payment of a past indebtedness due to the Plan Company. At the time of the execution of the mortgage, the bankrupt was, and for some time prior thereto had been, largely indebted to the Plan Company. This indebtedness was guaranteed by two comakers, and was payable in monthly installments. The bankrupt was in default for four or five payments, and the Plan Company had brought actions to recover…