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Bankruptcy Court Discharges Church Officer on Mortgage Guarantee

Bankruptcy Court Discharges Church Officer on Mortgage Guarantee

Bankruptcy Court Discharges Church Officer on Mortgage Guarantee

Discharge denied for willful and malicious failure to return assets to Synod taking control of church
An officer of a local church within the Evangelical Lutheran Church of America has obtained a mixed decision in seeking discharge of her obligations to the Synod in a personal bankruptcy proceeding. The Bankruptcy Court has ruled that she may be discharged from a guaranty she made to assist the local church to mortgage its property during a dispute with the Synod over control of the local organization. But it has ruled that she acted willfully and maliciously in refusing to transfer the assets in a bank account to the Synod following a court injunction to do so. ( In re: Gotwald, Bankruptcy Ct., E.D. PA, No. 10-14759, 3/26/13 .)

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