BMI Federal Credit Union v. Furry-Mongold et al

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION
In re: 	:
: 	Case No. 25-50950
Kenneth Furry-Mongold, 	: 	Chapter 7
John Mongold 	: 	Judge Nami Khorrami
Debtor. 	:
:
:
BMI Federal Credit Union, 	:
:
Plaintiff, 	:
v. 	: 	Adv. Pro No. 25-02059
:
:
Kenneth Furry-Mongold, et al., 	:
:
Defendants. 	:
:
ORDER DENYING PLAINTIFF’S MOTION FOR DEFAULT
JUDGMENT (DOC. 6)
Before the Court is Plaintiff’s Motion for Default Judgment (Doc. 6) (the “Motion”). The
Motion was filed by Plaintiff BMI Federal Credit Union (“Plaintiff”), and it seeks entry of a default
________________________________________________________________
This document has been electronically entered in the records of the United
States Bankruptcy Court for the Southern District of Ohio.
IT IS SO ORDERED.
Dated: February 19, 2026
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judgment against Defendant Kenneth Furry-Mongold (“Mr. Furry-Mongold”) under Rule 55(b) of
the Federal Rules of Civil Procedure (the “Civil Rules”), as made applicable herein by Rule 7055
of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”). Because proper service
upon Mr. Furry-Mongold has not yet been accomplished, the Motion is denied.
The docket indicates that Mr. Furry-Mongold was served by first-class mail at the address
shown on his petition in accordance with Bankruptcy Rule 7004(b)(9). Certificate of Service 1-2,
Dkt. No. 3. The docket does not indicate service upon Mr. Furry-Mongold’s bankruptcy counsel
as required by Bankruptcy Rule 7004(g). 	Where the debtor is a defendant in an adversary
proceeding, both the debtor and debtor’s counsel must be served before service upon the debtor is
complete. 	Hursey v. Long (In re Long), Nos. 24-31855, 25-03002, ___ B.R. ___, 2026 Bankr.
LEXIS 261, at *25-26 (Bankr. S.D. Ohio Jan. 27, 2026). 	“[T]he purpose of Bankruptcy Rule
7004(g) is to avoid the possibility that a Debtor, represented by counsel in the bankruptcy case,
could be served with process in an adversary proceeding, without counsel's knowledge, setting up
conditions for a default judgment if the Debtor did not respond.” Id. at *25 (citation modified).
Since there is no evidence that Mr. Furry-Mongold’s bankruptcy counsel was served with the
summons and complaint as required by Bankruptcy Rule 7004(g), service upon Mr. Furry-
Mongold is not complete and he is not in default.1
Even if proper service had been made, there are two other deficiencies in the Motion which
preclude entry of a default judgment. First, the docket does not reflect entry of default by the Clerk
under Civil Rule 55(a). Issuing a default judgment under Civil Rule 55(b) without a prior entry of
default under Civil Rule 55(a) is “procedurally improper.” Heard v. Caruso, 351 F. App’x. 1, 16
1 Furthermore, to the extent that the debtor’s counsel is served with the complaint via ECF in the main case, such
service is not valid under Bankruptcy Rule 7004(g). Long, ___ B.R. at ___; 2026 Bankr. LEXIS 261, at *26-28.
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(6th Cir. 2009); Devlin v. Kalm, 493 F. App’x 678, 685-86 (6th Cir. 2012); Hood v. Jordan Rest.
Grp. HQ LLC, No. 2:22-cv-486, 2024 U.S. Dist. LEXIS 220843, at *2-3 (S.D. Ohio Nov. 4, 2024).
Second, the declaration submitted in support of the Motion does not satisfy the
requirements for default judgments imposed by the Servicemembers Civil Relief Act, 50 U.S.C.
§ 3931 (the “SCRA”). 	This Court has issued a previous opinion detailing those requirements.
Huntington Nat’l Bank v. Yount (In re Yount), 658 B.R. 892, 893-95 (Bankr. S.D. Ohio 2024)
(collecting cases). As set forth in Yount, a declaration or affidavit submitted to satisfy the SCRA
must (1) set forth facts, not conclusions, relating to the military service of the defendant, and (2)
must detail the efforts made to determine the defendant’s military status. 	Id. at 894. 	Here, the
declaration merely avers that “[a]fter a diligent search, BMI has found no evidence that any
Defendant is in the military service of the United States of America.” Guthrie Decl. ¶ 3, Dkt. No.
6. Such conclusory allegations do not satisfy the SCRA. Yount, 658 B.R. at 894-95.2
Accordingly, the Motion is denied. The Plaintiff shall complete service upon Mr. Furry-
Mongold within 21 days of the date this Order is entered. 	In the event that service is not
completed within 21 days of the entry of this Order, the Complaint may be dismissed as to
Mr. Furry-Mongold without further notice or hearing.
IT IS SO ORDERED.
copies to:
Maria Mariano Guthrie, attorney for Plaintiff (via ECF)
Daniel J. Bennett, attorney for Defendant Maynard’s Towing, LLC (via ECF)
Defendant Kenneth Furry-Mongold, 8550 Trail Lake Drive, Powell, Ohio 43065
2 The Department of Defense maintains a website where the military status of a defendant may be checked. Yount,
658 B.R. at 895 n.3.
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