Kenneth L. Gellhaus Obtains Uncommon Denial of Debt Forgiveness in Bankruptcy Court Case

McNamee, Lochner, Titus & Williams P.C. Attorney Kenneth L. Gellhaus obtained an uncommon denial of debt forgiveness in the case of Ross v. Wolpe that preserved McNamee’s clients’ ability to collect a large judgment from individual debtors who had sought bankruptcy protection in the fall of 2009 to avoid paying the debt. The decision was issued by Chief Judge Robert Littlefield, US Bankruptcy Court, Northern District of NY, on April 18, 2013.

Ronald and Susan Ross had obtained a 2008 Michigan judgment against Rabbi Daniel Wolpe and his wife for breach of a rent-to-own contract. When the Rabbi and his wife moved to Albany, Attorney Gellhaus was retained by the Ross’s to collect on the judgment ($170,000). The Rabbi and his wife filed a bankruptcy proceeding to obtain forgiveness (discharge) of the judgment debt and all their other debts. Gellhaus filed a lawsuit objecting to the discharge of the debt owed to Ross, and of all debts, based on the many irregularities, mistakes and omissions in the Wolpe bankruptcy filings. The Rabbi and his wife retained separate attorneys, and fought the case all the way through trial. Denial of a debtor’s entire bankruptcy discharge is very rare (rather than denial of one or two debts) because the fundamental premise of bankruptcy is to provide a “fresh start” and “clean slate” to individuals and companies that file bankruptcy.

At the two-day trial in the fall of 2011, Gellhaus presented and proved up so many mistakes and errors that the Judge concluded in his decision that it was one of “the most flawed bankruptcy filings in the court’s memory”.

Mr. Gellhaus practices in the areas of commercial litigation, consumer regulatory compliance and FDPCA-TILA defense litigation; landlord/tenant, insurance subrogation, and bankruptcy matters. He represents businesses in all phases of debt collection, from prejudgment attachments and actions to recover equipment and personal property to the enforcement of commercial money judgments through property executions, installment payment orders and post-judgment proceedings. Gellhaus also represents national banks in litigating commercial banking fraud. He has commercial trial experience in the Capital Region and in New York City.

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About MLTWMcNamee, Lochner, Titus & Williams, P.C. is dedicated to providing effective and creative solutions to the legal issues of individuals and businesses. Founded in 1863, the firm is celebrating 150 years of continued legal service. McNamee's offices are located in the New York State Capital at 677 Broadway and in Saratoga County at 646 Plank Road, Clifton Park. For additional information about McNamee, Lochner, Titus & Williams, visit www.mltw.com or call 518-447-3200.

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