Krasinski v. Walsh (In Re Denochick)

MEMORANDUM ORDER

CINDRICH, District Judge.

This bankruptcy appeal fulfills the old adage, “No good deed goes unpunished.” It also illustrates the wisdom of Proverbs 22:26: “Be not one of those who give pledges, who become surety for debts.” Revised Standard Version.

In this case, appellants agreed to guarantee a debt consolidation loan from NBOC to Sandra Krasinski’s sister, Susan Lee Denochick (the debtor). The debtor made $1,713.35 in loan payments to NBOC in the year prior to filing bankruptcy. Appellants received none of this money, but the payments had the indirect effect of reducing their…