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§ 548(a)(1)

Floyd v. Option Mortg. Corp. (In re Supplement Spot LLC)

Ruling
Transfers to mortgage corporation within four years of petition date avoided as fraudulent.
Procedural posture

Plaintiff Chapter 11 trustee for the debtor brought an adversary proceeding to avoid transfers by the debtor to defendant mortgage corporation totaling $ 90,668.08 under 11 U.S.C.S. § 548(a)(1)(B) and Tex. Bus. & Com. Code Ann. § 24.006(a).

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Commercial opinion summary, case decided on July 07, 2009 , LexisNexis #0809-127

Campbell v. Dudley (In re Sobota)

Ruling
Transfers could not be avoided absent facts sufficient to establish fraud.
Procedural posture

The matter came before the court for trial on chapter 7 trustee's complaint to avoid certain transfers by debtor pursuant to 11 U.S.C.S. § 548, pursuant to provisions of the Ohio Uniform Fraudulent Transfer Act (UFTA) by virtue of the trustee's status pursuant to 11 U.S.C.S. § 544.

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Consumer opinion summary, case decided on June 02, 2009 , LexisNexis #0709-123

In re Roca

Ruling
Trustee entitled to recover one-half interest in property fraudulently transferred by debtor to elderly mother.
Procedural posture

Plaintiff trustee filed an adversary proceeding for relief from an allegedly fraudulent transfer by debtor, an individual who filed a chapter 7 case, to defendant, debtor's elderly mother. At issue was whether plaintiff had established a right to relief under 11 U.S.C.S. § 548(a)(1) or 11 U.S.C.S. § 544(b) as well as the effect, if any, of Arizona's uniform fraudulent transfer act, Ariz. Rev. Stat. § 44-1001 on the parties' respective rights.

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Consumer opinion summary, case decided on January 26, 2009 , LexisNexis #0309-066

Omega Door Co. Reorganization Trust v. Buonpane (In re Omega Door Co.)

Ruling
Bankruptcy court erred in finding that fraudulent transfer allegations against note payments were time barred.
Procedural posture

Plaintiff trustee sued defendant shareholder, seeking, inter alia, to recover note payments made by the debtor as fraudulent transfers under 11 U.S.C.S. §§ 544(b) and 548, and alleging that the payments were preferential transfers under 11 U.S.C.S. § 547(b). The bankruptcy court for the Northern District of Ohio dismissed the fraudulent transfer claims, but found for the trustee on the preference claim. The parties cross appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on January 13, 2009 , LexisNexis #0209-102

Jalbert v. Zurich Am. Ins. Co. (In re Payton Constr. Corp.)

Ruling
Court denied motion to stay or dismiss fraudulent transfer proceeding which was not subject to arbitration.
Procedural posture

Defendant, an administrative claimant in a chapter 11 debtor's bankruptcy case, filed a motion to stay or dismiss an adversary proceeding brought by the trust administrator for the liquidating trust established under the debtor's confirmed plan. The claimant also filed a motion to compel arbitration of its administrative claim and of the administrator's claims pursuant to the Federal Arbitration Act, 9 U.S.C.S. § 1 et seq.

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Commercial opinion summary, case decided on January 13, 2009 , LexisNexis #0309-122

Braunstein v. Leung (In re Leung)

Ruling
Transfer from debtor to spouse to reduce spouse's loan obligation avoided as fraudulent.
Procedural posture

Plaintiff chapter 7 trustee sued defendant debtor and his wife, seeking to avoid the debtor's payment of $90,000 to reduce the wife's loan obligation as, inter alia, a fraudulent transfer under 11 U.S.C.S. § 548(a)(1). The bankruptcy court conducted a trial.

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Consumer opinion summary, case decided on September 22, 2008 , LexisNexis #1208-068

Durand v. Ackerman (In re Durand)

Ruling
Default and sanctions reversed as failure to appear at hearing in avoidance proceeding was insufficient grounds.
Procedural posture

Appellant husband sought review of the judgments of the United States Bankruptcy Court, which denied his motion for reconsideration and granted appellee trustee's motion, pursuant to Fed. R. Bankr. P. 7037 and Fed R. Civ. P. 37, for default judgment and sanctions, specifically attorney's fees and costs, in an action to avoid the debtor's transfer of property to her husband as a fraudulent conveyance or unauthorized post-petition transfer.

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Consumer opinion summary, case decided on September 16, 2008 , LexisNexis #1008-136

Renn v. F.W. Fin. Servs. Inc.

Ruling
Fraudulently transferred assets could be recovered from subsequent transferee that paid less than reasonably equivalent value.
Procedural posture

A trustee filed an action against defendant company, pursuant to 11 U.S.C.S. § 548(a)(1)(B), to avoid the transfer of assets of the debtor to the company and to recover the value of the assets from a subsequent transferee, a limited liability company (LLC), pursuant to 11 U.S.C.S. § 550(a). After a trial, the court issued findings of fact and conclusions of law.

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Commercial opinion summary, case decided on June 05, 2008 , LexisNexis #0708-064

Schnittjer v. Houston (In re Houston)

Ruling
Debtor's transfer of property to mother for less than full value within one year of filing was fraudulent.
Procedural posture

Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff trustee filed an adversary proceeding alleging that a transfer of real estate and certain CRP payments to defendant, debtor's mother, constituted fraudulent transfers. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on April 02, 2008 , LexisNexis #0408-116

EBC I Inc. v. Americal Online Inc. (In re EBC I Inc.)

Ruling
Payments to internet service provider for on-line advertising were not avoidable as fraudulent.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant Internet service provider (ISP), seeking to recover amounts paid to the ISP for online advertising services prior to the ISP's termination of the parties'agreement as fraudulent transfers under former 11 U.S.C. § 548(a)(1). The bankruptcy court conducted a trial.

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Commercial opinion summary, case decided on January 10, 2008 , LexisNexis #0208-098