First American Title Insurance v. Nation (In Re Nation)

MEMORANDUM

R. THOMAS STINNETT, Bankruptcy Judge.

The chapter 13 debtor owed Suntrust Bank a debt under a promissory note that was secured by a mortgage on the debtor’s home. The debtor’s chapter 13 plan provided that the real property, the debtor’s home, would be sold and Suntrust would be paid from the sale proceeds. First American Title Insurance Company acted as the closing agent for the sale and also issued a title insurance policy to the buyers. Neither the title company nor the debtor paid Suntrust from the sale proceeds. Shortly after the sale, the court granted the debtor a discharge of…