In re Nance

Nance, a professional football player, fell behind on his debts to Coolidge Bank and Trust Co. (Coolidge) and signed an "Assignment of Contract" covering his player-contract income for three future seasons as collateral. When Coolidge later questioned its security, Nance signed a "Declaration of Revocable Trust" giving Coolidge control over money the team already owed him for two prior, already-completed seasons. Nance remained in arrears and eventually filed for bankruptcy; Coolidge sought to have the unpaid balance declared non-dischargeable as Nance's converted property. The bankruptcy court agreed, but the district court held the assignment ineffective for failing to comply with Massachusetts's wage-assignment statute, and Coolidge appealed.