Leigh Raynor filed for Chapter 13 bankruptcy on April 11, 2019, and, after receiving a general discharge of debts on July 30, 2024, commenced a Student Loan Adversary Proceeding to discharge her student loan debts, totaling $80,408.84 as an "undue hardship" under 11 U.S.C. § 523(a)(8). The student loans were incurred between 1999 and 2002 for undergraduate and graduate education, but Raynor did not enter the professional field associated with her graduate degree.
The bankruptcy court for the Eastern District of North Carolina denied Signature Capital, LLC's motion to amend or set aside the order confirming Chapter 11 bankruptcy reorganization plan. Signature Capital sought relief under Rule 60(a) and Rule 60(b) of the Federal Rules of Civil Procedure, arguing that the plan failed to recognize a subordination agreement that granted it lien priority over the IRS for certain assets.
In the first of these two unrelated cases, Ephraim Demons, representing himself, alleged that his mortgage lender (among others) committed fraud related to his mortgage based on Demons' belief that he created “money” when signing his mortgage.
Similarly, Aalaam alleged fraud and claimed his mortgage loan was invalid under the "vapor money" theory, arguing that banks create money by recording promissory notes as assets and therefore loans don’t need repayment.
