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Morris v. St. John Natl Bank (In re Haberman)

Morris v. St. John Natl Bank (In re Haberman)

Ruling
Bank was ordered to turn over to the trustee an amount equal to the value of a car as of the day the debtors filed for bankruptcy, leaving the bank with a general unsecured claim against the bankruptcy estate for the same amount.
Procedural posture

Plaintiff trustee sued defendant bank, seeking to avoid the bank's lien on the debtors'car. After the debtor paid off the balance the debtor owed, the bankruptcy court determined that the bank's lien was unperfected and the trustee could avoid it. The trustee then sought a determination in the postpetition payments.

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opinion summary, case decided on February 10, 2006 , LexisNexis #0306-095