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IN RE WALLEN

Bankruptcy No. LA 81-07569-CA, Adv. No. LA 81-3127-CA, BAP No. CC-82-1064 VAbG.

34 B.R. 785 (1983)

In re Robert A. WALLEN and Barbara A. Wallen aka Barbara A. Collar, Debtors. EQUITABLE FACTORS COMPANY, Defendant and Appellant, v. Robert A. WALLEN and Barbara A. Wallen, Plaintiffs and Appellees.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided November 8, 1983.

Attorney(s) appearing for the Case

Samuel Bufford, Gendel, Raskoff, Shapiro & Quittner, Los Angeles, Cal., for defendant and appellant.

Sandra L. Bendon, Sulmeyer, Kupetz, Baumann & Rothman, Los Angeles, Cal., for plaintiffs and appellees.

Before VOLINN, ABRAHAMS and GEORGE, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

I. FACTS

Prior to July, 1979, the debtors, Robert and Barbara Wallen, owned the stock in Iberia Jewelry Design, Inc. (Iberia), a business which produced costume jewelry. On January 27, 1978, the debtors entered into an agreement with appellant, Equitable Factors Company (Equitable), to provide accounts receivable financing to Iberia. The debtors personally guaranteed the Iberia indebtedness to Equitable, providing...

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