24bk14828, 25ap00257
The court found debt owed to American Community Bank by Debtor non-dischargable under Section 523(a)(2)(B) of the Code. Debtor lied about his and his companies’ financial condition to obtain a loan from American Community Bank. Debtor first obtained a loan from Fifth Third Bank, which he and his estranged wife eventually acquired by executing an Assignment and Assumption Agreement. This gave them a first position lien on the loan. Debtor then obtained a loan and revolving line of credit from American Community Bank and failed to disclose that he and his estranged wife held a first position lien on the Fifth Third Bank loan. Relying on Debtor’s offered financial condition, American Community Bank extended a loan it never would have had it known about Debtor’s position on the Fifth Third loan.