News

October 15, 2019 News

Pro Bono - Firm Defends Schoolteacher’s Home against Creditors of Third Party

October 15, 2019 – Y. David Scharf, Christopher Milito, Robert K. Dakis and David J. Kozlowski fended off an attempt by a bank and a bankruptcy trustee to seize the home of a schoolteacher in Brooklyn. The long-time educator at a private religious institution purchased his home at the beginning of his career over twenty years ago.  Due to his modest salary, the client had enlisted the help of his diamond-dealer brother-in-law to secure financing.  Although the client had completely satisfied the mortgage over the years, a third party bank attempted to seize the home to pay down the brother-in-law’s trade debt.  Morrison Cohen fought that attempt in Supreme Court, which resulted in a bankruptcy filing by the brother-in-law.  The firm continued its defense of the teacher against the bankruptcy trustee, who also attempted to seize the home.  As a result of the firm’s vigorous defense, the trustee settled with the client on favorable terms, preserving his home and the value of the client’s equity.