Moran v. Household Realty Corp. (In Re Moran)

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

A INTRODUCTION

The instant adversary proceeding (“the Proceeding”) presents the question of whether a credit insurer of a Debtor-mortgagor must make the insured’s mortgage payments despite a significant lapse in the Debtor’s payment of premiums along with the mortgage payments because the Debt- or did not receive a copy of the policy nor notice of the policy’s cancellation.

We deny the Debtor’s claim against the insurer here because we find that the Debtor “abandoned” the policy by not contacting the insurer to clarify its terms and failed to dispute a…