Case Summary:
Chapter 7 debtors brought an adversary proceeding seeking a determination that the junior mortgage on their home was invalid. The Debtors argued that although they both signed the promissory note—and although they acknowledge they received and spent the loan proceeds—one of the debtors did not remember signing the mortgage and, as a result, either the signature that appeared on the mortgage was a forgery or the result of misrepresentation and fraud. Despite its skepticism of the Debtors’ “obviously self-serving” representations, the Court concluded that the ultimate factual question turned on a credibility assessment that could only be made in person. Accordingly, it denied summary judgment and set the matter for trial.

Statute/Rule References:
Fed. R. Bankr. P. 7056 -- Summary Judgment
Fed. R. Civ. P. 56(c) -- Summary Judgment

Key Terms:
Summary Judgment