In the Matter of Grant L. Nelson, Bankrupt. California State Employees' Credit Union No. 6, a California Corporation v. Grant L. Nelson

Grant L. Nelson, appellant, filed a voluntary petition for bankruptcy on April 30, 1974. He listed debts of $40,563.00 and assets of $23,700.00, which were claimed to be exempt. He was adjudicated bankrupt on May 16, 1974. ■ He had been borrowing money from appellee, California State Employees’ Credit Union No. 6, over a period of some three years, starting in March, 1971. He listed a $5,000.00 debt to appel- lee as an “unsecured debt without priority,” in his bankruptcy schedule.

To the statement of facts in Note 1, we should add that the bankruptcy judge found the debt non-dischargeable under Section 17(a)(2) of the Bankruptcy Act, 11 U.S.C.A. § 35 (a)(2); and judgment was rendered on the promissory note held by appellee in the sum of $5,003.11, and costs of $70.00 (C.T. 70-72), plus interest against appellant.

Appellant then appealed to the district court. The district judge ordered the matter remanded to the bankruptcy judge for further proceedings relating to appellee’s reliance as that aspect might be affected by the currency of information contained in a credit report received by appellee in light of the “No Other Debts” statement. The bankruptcy judge, after hearing…