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§ 548(a)(1)

Meiburger v. LNDP&G Ultra Trust (In re Woodworth)

Ruling
Debtor's transfer of funds originally transferred into brokerage account by debtor's mother to trust account was avoidable.
Procedural posture

Chapter 7 trustee filed a complaint against a trust and its trustee seeking to avoid a transfer of funds to the trust by the debtor pursuant to 11 U.S.C.S. § 548(a)(1)(A) and (a)(1)(B) and to recover the value of the transfer under 11 U.S.C.S. § 550(a).

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Consumer opinion summary, case decided on February 06, 2013 , LexisNexis #0213-129

Hill v. Zaid (In re Zaid)

Ruling
Transfer of interest in family partnership could be avoided.
Procedural posture

A chapter 7 trustee sought avoidance and recovery of an alleged fraudulent transfer of an interest in a family partnership from the debtor to defendant transferee, the debtor's brother, pursuant to 11 U.S.C.S. § 548(a)(1).

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Consumer opinion summary, case decided on January 28, 2013 , LexisNexis #0213-089

Ward v. Jenkins (In re Jenkins)

Ruling
Transfer to nondebtor spouse was intended to hinder, delay or defraud creditors and could be avoided.
Procedural posture

The chapter 7 trustee brought an adversary proceeding against the non- debtor wife of the debtor, asserting that she was liable as an initial transferee of proceeds of various legal claims litigated by the debtor, pursuant to 11 U.S.C.S. §§ 544(b), 548(a), 550(a)(1), N.C. Gen. Stat. §§ 39- 23.4(a)(2) and 39-23.5(a). The trustee moved for partial summary judgment on the claims.

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Consumer opinion summary, case decided on December 12, 2012 , LexisNexis #0113-022

In re Cook

Ruling
Foreclosure sale two days before petition date for reasonably equivalent value could not be avoided.
Procedural posture

When chapter 13 debtors' residence was sold at a foreclosure sale two hours before they filed for bankruptcy relief, the debtors filed a motion to enforce the automatic stay under 11 U.S.C.S. § 362(a)(3) and (5). The motion also requested a declaration that the foreclosure sale was null and void with the transfer set aside under 11 U.S.C.S. § 548(a)(1)(B)(i) and (ii).

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Consumer opinion summary, case decided on October 05, 2012 , LexisNexis #1112-024

4100 W. Grand LLC v. TY Grand LLC (In re 4100 Grand LLC)

Ruling
Recording of deed in lieu of foreclosure was not a fraudulent transfer.
Procedural posture

Chapter 11 debtor-in-possession filed a complaint against creditor to avoid and recover a transfer alleged to be fraudulent pursuant to 11 U.S.C.S. §§ 544(b) and 548(a)(1)(B) and 740 ILCS 160/5 and 160/6.

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Commercial opinion summary, case decided on October 04, 2012 , LexisNexis #1112-057

In re Neal

Ruling
Transfer pursuant to marriage dissolution decree awarded to extent exceeding value received by debtor.
Procedural posture

Ex-husband challenged an order from the U.S. Bankruptcy Court for the Northern District of Ohio, Eastern Division in favor of chapter 7 trustee. The order determined that the debtor's transfer of property to her ex-husband pursuant to a marriage dissolution decree was avoidable under 11 U.S.C.S. § 548(a)(1)(B) and Ohio Rev. Code Ann. § 1336.05 and that the trustee was entitled to recover an amount calculated by the court.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 28, 2012 , LexisNexis #1212-025

Krudy v. Hoetmer (In re Hoetmer)

Ruling
Prepetition 401(k) loan repayment "reborrowed" just after petition date and converted to non- exempt property was fraudulent and avoidable.
Procedural posture

Plaintiff trustee alleged that a 401(k) loan repayment was a fraudulent transfer and sought to avoid and recover it from defendant debtor for the estate under 11 U.S.C.S. §§ 548(a)(1)(A), 550. The matter was pending judgment following a trial.

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Consumer opinion summary, case decided on September 26, 2012 , LexisNexis #1212-092

Zazzali v. AFA Fin. Group LLC

Ruling
Avoidance proceedings dismissed except to the extent that good faith/value defense possibly applied.
Procedural posture

Plaintiff Trustee brought a proceeding against defendants (some of "Movants"). Count One was pursuant to 11 U.S.C.S. § 548(a)(1)(A). Counts Two and Three were pursuant to 11 U.S.C.S. § 544 and Idaho Code Ann. §§ 55-906, 55-913. Count Four alleged unjust enrichment. Count Five was pursuant to 11 U.S.C.S. § 547. Count Six was pursuant to 11 U.S.C.S. § 549. Count Seven sought claim disallowance under 11 U.S.C.S. § 502(d). Movants sought dismissal.

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Commercial opinion summary, case decided on August 28, 2012 , LexisNexis #1212-093

In re Sentinel Mgmt. Group

Ruling
Judgment holding that debtor's use of customer assets to finance loan was not fraudulent affirmed.
Procedural posture

Plaintiff trustee filed an adversary proceeding alleging that the debtor fraudulently used customer assets to finance a loan to cover its house trading activity and that defendant bank knew about it. There were claims of fraudulent transfer, preferential transfer, equitable subordination, and invalidation of the lien. The U.S. District Court for the Northern District of Illinois, Eastern Division, rejected the claims. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on August 09, 2012 , LexisNexis #0812-128

Schlosser v. Kendall (In re Kendall)

Ruling
Trustee could avoid transfers to debtor's spouse or spouse's company made with intent to hinder, delay or defraud creditors.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against a chapter 7 debtor's wife and a family trust, seeking a determination that he was allowed under 11 U.S.C.S. §§ 544 and 548 and Colorado law to avoid transfers the debtor made to his wife and the trust less than two years before he declared bankruptcy. The case was tried to the court.

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Consumer opinion summary, case decided on August 06, 2012 , LexisNexis #0812-127