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§ 544(a)(1)

Palmer v. Washington Mut. Bank (In re Ritchie)

Ruling
Creditor's alleged interest in debtor's manufactured home properly avoided by bankruptcy court in accordance with state law.
Procedural posture

Creditor challenged an order of the bankruptcy court for the Eastern District of Kentucky granting the motion for summary judgment of plaintiff, the chapter 7 Trustee, and avoiding the creditor's lien on debtor's manufactured home.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 24, 2009 , LexisNexis #1009-085

Den-Mark Props. LLC v. SunTrust Bank (In re Den-Mark Props. LLC)

Ruling
Improperly recorded second deed of trust could be avoided.
Procedural posture

Debtor sued holder of a second deed of trust on certain properties and trustee, seeking to invalidate the second deed of trust, a determination that their' claims were unsecured with respect to the properties, and to require amounts held in escrow resulting from the sale of certain properties to be paid to the debtor. The debtor moved for summary judgment.

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Commercial opinion summary, case decided on March 27, 2009 , LexisNexis #0609-058

Gugino v. Canyon Fin. Of Boise Inc. (In re Green)

Ruling
Trustee's interest in motorcycle as hypothetical judicial lien creditor was superior to that of creditor with unperfected security interest.
Procedural posture

Chapter 7 trustee brought an adversary proceeding against creditor, seeking to avoid an asserted security interest in a motorcycle on the grounds that the security interest was unperfected when the debtors filed their chapter 7 bankruptcy petition, and thus avoidable under 11 U.S.C.S. § 544(a)(1). The court held a trial.

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Consumer opinion summary, case decided on March 20, 2009 , LexisNexis #0509-120

Gugino v. GMAC (In re Laursen)

Ruling
Typographical error in certificate of title did not render security interest in motor vehicle avoidable as improperly perfected.
Procedural posture

Plaintiff trustee filed an adversary proceeding to avoid, pursuant to 11 U.S.C.S. § 544(a)(1), defendant creditor's security interest as unperfected when the debtor filed the chapter 7 petition.

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Consumer opinion summary, case decided on June 26, 2008 , LexisNexis #1108-124

Lovald v. Claussen (In re Claussen)

Ruling
Unperfected redistribution of equity in marital home was avoidable by trustee.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, a bankruptcy debtor and her former spouse, alleging that a redistribution of equity in the marital home of the debtor and the spouse in their divorce agreement was avoidable as subordinate to the trustee's hypothetical judicial lien under 11 U.S.C. § 544(a)(1). The bankruptcy court conducted a trial.

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opinion summary, case decided on March 23, 2007 , LexisNexis #0507-060

Kipperman v. Sutherland (In re Bush)

Ruling
Charging lien against both real estate and proceeds of sale was valid and non-avoidable.
Procedural posture

After plaintiff trustee filed an adversary proceeding asserting claims for relief under 11 U.S.C. §§ 544(a)(1), (2) and (3), 545(2) and 547(b), the effect of which would be to avoid a charging lien filed by defendant, former counsel to the chapter 7 debtor, defendant moved for summary judgment declaring that the charging lien was valid and had attached to proceeds of the sale of debtor's real estate in connection with debtor's divorce.

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opinion summary, case decided on November 14, 2006 , LexisNexis #0107-117

Musso v. Ostashko

Ruling
Matrimonial assets were estate property where divorce judgment was docketed after filing date due to trustee's status as hypothetical lien creditor.
Procedural posture

In a chapter 7 case, appellant trustee filed an adversary proceeding against appellee, the debtor's ex-wife. The wife sought a declaration that the marital assets were not property of the bankruptcy estate and that she was entitled to them by a state matrimonial court judgment. The bankruptcy court found in favor of the trustee, but the District Court for the Eastern District of New York reversed. The trustee sought review.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on November 06, 2006 , LexisNexis #1206-065

In re Lortz

Ruling
Trustee was allowed to avoid lien since creditor's clerical error and erroneous release of title made creditor unsecured creditor.
Procedural posture

A chapter 7 trustee sought to avoid a creditor's lien, pursuant to 11 U.S.C. § 544(a)(1), the "strong arm provision." The creditor filed a motion for relief from the automatic stay.

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opinion summary, case decided on June 16, 2006 , LexisNexis #0706-044