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IN RE MEDLEY

BAP No. CC-96-1617-HOV, Bankruptcy No. ND95-10415RR, Adversary No. 95-1291.

214 B.R. 607 (1997)

In re Gerald W. MEDLEY, and Karen E. Medley, Debtors. Karen E. MEDLEY, Appellant, v. George V. ELLIS, and Albie Ellis, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided October 30, 1997.

Attorney(s) appearing for the Case

John A. Geiss, Pismo Beach, CA, for Appellant.

Michael E. Sauter, Atascadero, CA, for Appellees.

Before: VOLINN, OLLASON, and HAGAN, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge.

OVERVIEW

Prior to bankruptcy, the debtor induced an elderly couple to loan her approximately $40,000. She claimed she needed the money to clear IRS liens from property she owned, in order to sell the property. In fact, the debtor did not own any property. When they were not repaid the lenders threatened to sue and the debtor stipulated to judgment and agreed to make monthly restitution payments. After the...

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