In Re Franklin

922 F.2d 536 59 USLW 2462 , 24 Collier Bankr.Cas.2d 688 , Bankr. L. Rep. P 73,774 In re Gus Kit FRANKLIN, a/k/a Gus Franklin, a/k/a Gus K. Franklin, Gus K. Franklin d/b/a Allied Tree Service, Allied Enterprises, Inc., Allied Tree and Lawn Service, and Susan Karen Franklin, Debtors. Gus K. FRANKLIN, et al., Appellant, v. COMMONWEALTH FINANCIAL CORPORATION, Appellee. No. 88-6224. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 9, 1990. Decided Jan. 3, 1991. Andrew K. Mauthe, Speers, Dana, Teal & Balfour, Costa Mesa, Cal., for defendants and appellants. John A. Belcher, Richards, Watson & Gershon, Richard W. Labowe, Labowe, Labowe & Hoffman, Los Angeles, Cal., for plaintiff and appellee. Appeal from the Ninth Circuit Bankruptcy Appellate Panel. Before REINHARDT and LEAVY, Circuit Judges, and KING, * District Judge. REINHARDT, Circuit Judge: 1 Over 1981 and 1982, Gus Franklin d/b/a Allied Tree Enterprises ("Allied") borrowed approximately $580,000 from Commonwealth Financial Corporation ("Commonwealth"), a commercial lender. For security, in June 1981 Commonwealth obtained an interest in all of Allied's property, including accounts receivable,…