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SALINE STATE BANK v. MAHLOCH

No. 86-2458.

834 F.2d 690 (1987)

SALINE STATE BANK, Appellant, v. Richard MAHLOCH, Eunice Mahloch, Dennis Mahloch and First National Bank of Chicago, Illinois, Appellees.

United States Court of Appeals, Eighth Circuit.

Decided November 23, 1987.

Attorney(s) appearing for the Case

Jerrold L. Strasheim, Omaha, Neb., for appellant.

Joseph M. Russell, Chicago, Ill., for appellees.

Before LAY, Chief Judge, HEANEY, Circuit Judge, and LARSON, Senior District Judge.

LAY, Chief Judge.

Saline State Bank entered into a mortgage agreement with the debtors, Richard, Dennis, and Eunice Mahloch, on January 12, 1982. After meeting their obligations under the mortgage agreement for eleven months, the Mahlochs filed a petition in bankruptcy under chapter 11 of the Bankruptcy Code on November 30, 1982. Even though the Mahlochs had declared bankruptcy, however, they continued to meet their obligations...

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