Southwest Bank v. Parsons (In Re Parsons)

MEMORANDUM DECISION

JOHN J. HARGROVE, Bankruptcy Judge.

Plaintiff, Southwest Bank (“Southwest”) filed this adversary proceeding against the debtors/defendants Kevin T. Parsons and Hillary Greenwood Parsons (“the Parsons”) to determine the dischargeability of Southwest’s loan to the Parsons under 11 U.S.C. § 523(a)(2)(A) and § 523(a)(2)(B).

At issue is whether a claim is extinguished for purposes of maintaining an action against the debtor under 11 U.S.C. § 523(a)(2)(A) and § 523(a)(2)(B) where a creditor sells collateral without notice to the debtor as required by California Commercial Code §…