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Burtch v. Connecticut Cmty. Bank (In re J. Silver Clothing Inc.)

Burtch v. Connecticut Cmty. Bank (In re J. Silver Clothing Inc.)

Ruling
Transfer of security interest to bank was contemporaneous exchange for loan and not avoidable.
Procedural posture

Plaintiff Chapter 7 trustee filed a complaint against defendant creditors, an individual and a bank, in which he sought, inter alia, to avoid and recover fraudulent and preferential transfers under 11 U.S.C.S. §§ 548, 547, and 550 and the disallowance of all claims under 11 U.S.C.S. § 502(d). The creditors moved for summary judgment. The trustee cross-moved for partial summary judgment.

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Commercial opinion summary, case decided on April 29, 2011 , LexisNexis #0511-139