Burns v. Shelton (In re Shelton)
Oct
20
2005
Ruling
The earmarking doctrine did not apply to a postpetition mortgage transaction, and the mortgage was invalid since a prior transfer of the underlying property was avoided.
Procedural posture
Plaintiff chapter 7 trustee sought avoidance of the transfer of property between defendants, debtor and his father, pursuant to 11 U.S.C. § 549(a). The court previously determined that the "earmarking doctrine" did not apply to the transfer. The matter was remanded from the U.S. Court of Appeals for the Sixth Circuit.
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Court
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