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In re Poff

In re Poff

Ruling
Mortgagee's cancellation of rescission did not constitute an avoidable preference.
Procedural posture

A debtor filed a Chapter 11 bankruptcy petition to stop a foreclosure. The case was converted to a Chapter 7 case. A creditor's security interest was inadvertently released before the mortgage on the debtor's residence was paid in full. The debtor sought declaratory relief as to secured status, to avoid preferential transfer, and for monetary damages for wrongful foreclosure. The creditor filed a motion for summary judgment on a preference claim.

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Consumer opinion summary, case decided on December 16, 2010 , LexisNexis #0111-090