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§ 548(a)(1)

Pullen v. Love (In re Pullen)

Ruling
Transfer made incident to divorce but with intent to defraud creditor was avoidable as fraudulent.
Issue(s)
Could trustee avoid transfer of one-half interest property to debtor's spouse in divorce settlement as fraudulent.

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Consumer opinion summary, case decided on August 07, 2013 , LexisNexis #1113-059

Anderson v. Patel (In re Diplomat Constr. Inc.)

Ruling
Payments during preference period for services in arrears were avoidable.
Issue(s)
Could payments made for services in arrears be avoided as preferential.

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Commercial opinion summary, case decided on August 06, 2013 , LexisNexis #1113-061

Smith v. SIPI LLC (In re Smith)

Ruling
Debtors could recover value of homestead exemption in property transferred by tax deed for less than reasonably equivalent value but could not recover actual property from subsequent purchaser.
Issue(s)
Whether Chapter 13 debtors were entitled under 11 U.S.C.S. § 548 to avoid an interest an LLC obtained in their residence when Illinois authorities issued a tax deed to the LLC.

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Consumer opinion summary, case decided on July 30, 2013 , LexisNexis #0813-094

Kirtley v. Stenzel (In re Rhein)

Ruling
Investment in start-up company in exchange for commission on classic car sale for which contract did not exist was avoidable.
Procedural posture

Plaintiff chapter 7 trustee filed a complaint against defendant creditor seeking to avoid a security interest held by the creditor in estate property pursuant to 11 U.S.C.S. § 548(a)(1)(B) and seeking turnover of such property. The creditor filed motions for relief from the automatic stay and for an order of abandonment.

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Consumer opinion summary, case decided on June 10, 2013 , LexisNexis #0713-024

Crumpton v. Stephens (In re Northlake Foods Inc.)

Ruling
Debtor's S-corporation election constituted reasonably equivalent value for transfer.
Procedural posture

Bankruptcy trustee filed a complaint claiming that a transfer to shareholder was a fraudulent transfer subject to avoidance and recovery by the trustee. The bankruptcy court ruled that the shareholder was entitled to judgment on the pleadings. The bankruptcy court dismissed the trustee's amended complaint. The U.S. District Court for the Middle District of Florida affirmed the bankruptcy court's orders. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on May 06, 2013 , LexisNexis #0513-128

Official Comm. Of Unsecured Creditors v. Hancock Park Capital II LP (In re Fitness Holdings Intl)

Ruling
Finding that transfer was constructively fraudulent reversed due to failure to consider whether notes created equity interests rather than debt.
Procedural posture

Chapter 7 trustee challenged a decision of the U.S. District Court for the Central District of California, which affirmed the bankruptcy court's dismissal of a complaint alleging that the debtor's pre-bankruptcy transfer of funds to its sole shareholder, in repayment of a purported loan, was a constructively fraudulent transfer under 11 U.S.C.S. § 548(a)(1)(B).

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on April 30, 2013 , LexisNexis #0513-088

Engler v. Herrling (In re Engler)

Ruling
Fraudulent transfers pursuant to Ponzi scheme were not avoidable as transferee provided value or was mere conduit and acted in good faith.
Procedural posture

Plaintiff, the chapter 7 Trustee, brought a fraudulent transfer action pursuant to 11 U.S.C.S. § 548(1)(1)(A) against defendant transferee. The matter was before the court for judgment following a trial.

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Consumer opinion summary, case decided on April 11, 2013 , LexisNexis #0513-019

Nasuti v. Avery (In re Avery)

Ruling
Transfer of property from debtor to son was avoided fraudulent and made to an insider.
Procedural posture

Chapter 7 trustee filed a complaint against defendants, a debtor and her son, alleging that the debtor's transfer of real property to her son was fraudulent and subject to avoidance under 11 U.S.C.S. § 548(a)(1)(A) and /or (a)(1)(B). As the son sold the property to innocent third parties, the trustee sought recovery of its value under 11 U.S.C.S. § 550(a). The trustee moved for summary judgment.

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Consumer opinion summary, case decided on March 05, 2013 , LexisNexis #0613-094

AP Servs. LLC v. Bellco Drug Corp. (In re CRC Parent Corp.)

Ruling
Fraudulent transfer and unauthorized postpetition transfer counts of avoidance proceeding dismissed due to failure to plead debtor's insolvency or facts showing payment cleared postpetition.
Procedural posture

A trustee of the debtors' litigation trust filed a complaint against creditor alleging that the creditor received preferential transfers or that the transfers were fraudulent conveyances or unauthorized post-petition transfers under 11 U.S.C.S. §§ 548 or 549. The trustee sought to recover the transfers and to disallow the creditor's claims. The creditor moved to dismiss the complaint for failure to state a claim for relief.

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Commercial opinion summary, case decided on March 01, 2013 , LexisNexis #0313-123

Barnard v. Albert (In re Janitorial Close-Out City Corp.)

Ruling
Trustee could recover transfers made by debtor during operation of Ponzi scheme.
Procedural posture

Plaintiff chapter 7 Trustee sought to recover transfers as (1) unjust enrichment, (2) transfers made with actual intent to hinder, delay, or defraud debtors' creditors pursuant to 11 U.S.C.S. § 548(a)(1)(A) and N.Y. Debt. & Cred. Law § 276 (2012) ("actual intent fraud"), and (3) constructively fraudulent transfers. In addition, the Trustee sought to recover attorney's fees. Defendant was the transferee. The Trustee moved for summary judgment.

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Commercial opinion summary, case decided on February 08, 2013 , LexisNexis #0313-055