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Cadence Bank v. Holman - $350K Debt Ruled Non-Dischargeable Under Fraud Exception

Cadence Bank obtained judgment against Raymond J. Holman and Joshualyn V. Holman in Adversary Proceeding No. 24-1005-KB, with the Court ruling their $350,000 guaranteed debt non-dischargeable under 11 U.S.C. § 523(a)(2)(A) (fraud exception). The Holmans represented in their SBA loan application that proceeds would fund working capital and expansion for their Novi-Antik Design LLC kitchen and bath remodeling business, but over $500,000 in proceeds were transferred to personal checking accounts or used to pay personal credit card bills with no documentary corroboration. The Court found the Holmans' trial testimony not credible given the complete absence of receipts, invoices, or bills.

Cadence Bank Wins $350k Non-Dischargeability Judgment Against Holmans

The United States Bankruptcy Court for the District of New Hampshire entered judgment for Cadence Bank in adversary proceeding 24-1005-KB, finding $350,000 in SBA loan debt non-dischargeable under 11 U.S.C. § 523(a)(2)(A). The court found that guarantors Raymond J. Holman and Joshualyn V. Holman made false representations in their loan application regarding the intended use of proceeds for their business Novi-Antik Design LLC, and that over $500,000 was instead transferred to personal accounts or used to pay personal credit card bills. The court found the defendants' testimony not credible given the absence of any corroborating documentary evidence such as receipts, invoices, or bills.