United States Supreme Court Cases & Opinions

U.S. Supreme Court

Ivanhoe Building & Load Assn. v. Orr, 295 U.S. 243 (1935)

Ivanhoe Building & Load Assn. v. Orr

No. 611

Argued April 5, 1935

Decided April 29, 1935

295 U.S. 243

Syllabus

1. A creditor of a bankrupt, claiming on a bond secured by a mortgage on real estate not owned by the bankrupt and upon which the creditor has foreclosed, is not a "secured creditor" of the bankrupt within the meaning of §§ 1 (23) and 57(e) of the Bankruptcy

Page 295 U. S. 244

Act, and is not precluded thereby from proving his claim for the principal of the bond and interest, though he may not collect and retain dividends which, with the fruits of the foreclosure, will exceed that amount. P. 295 U. S. 245.

2. The case of a bankrupt indebted to a creditor on a bond secured by a mortgage on property of a third person which the creditor has foreclosed is not a case of mutual debt between bankrupt and creditor, within the meaning of § 68(a) of the Bankruptcy Act, and that section does not limit the creditor's proof of claim to the difference between the debt and the avails of the foreclosure. Pp. 295 U. S. 246-247.

73 F.2d 609 reversed.

Certiorari, 294 U.S. 700, to review the affirmance of a judgment reducing a claim in bankruptcy.