§ 548(a)

Fisher v. Moon (In re Fisher)

Defendant county treasurer foreclosed on debtor's property for non- payment of property taxes. The total consideration received was the outstanding tax obligation of $1,843.75. Debtor and the chapter 13 trustee filed an avoidance action under 11 U.S.C. § 548(a)(1)(B), claiming the value of the property was approximately $68,000, and thus the transfer by the treasurer constituted a fraudulent conveyance. The parties moved for summary judgment.
Ruling: 
Duly noticed and conducted foreclosure sale for less than reasonable value was not a fraudulent transfer.
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Drew v. MAK Inv. LLC (In re Drew)

Plaintiff, the chapter 7 trustee, brought suit seeking to avoid the prepetition transfer of the debtor's residence to a third party purchaser under 11 U.S.C. § 548, and to collect damages pursuant to state law and the common law, treble damages plus fees and costs pursuant to the New Hampshire Consumer Protection Act ("NHCPA"), N.H. Rev. Stat. Ann. § 358-A. The purchaser argued it had paid "reasonably equivalent value"for the property.
Ruling: 
Purchase of title for less than reasonably equivalent value was avoidable.
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Midland Euro Exchange Inc. v. Swiss Finance Corp. (In re Midland Euro Exchange Inc.)

Plaintiff chapter 7 trustee brought an adversary proceeding against defendants, a foreign exchange brokerage and 10 unnamed defendants, to set aside and recover allegedly fraudulent transfers of at least $897,000 paid by debtor. Two claims for relief were brought under 11 U.S.C. §§ 548(a)(1)(A) and 550(a). The brokerage, a foreign company, moved to dismiss pursuant to Fed. R. Civ. P. 12(b)(6), made applicable by Fed. R. Bankr. P. 7012(b).
Ruling: 
Fraudulent transfer provisions of Bankruptcy Code do not apply to foreign transfers.
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Universal Church v. Geltzer

Appellant church, a nonprofit corporation, sought review of a judgment from the District Court for the Eastern District of New York, which held that the Religious Liberty and Charitable Donation Protection Act did not prevent appellee bankruptcy trustee from avoiding a chapter 7 debtor's donations to the church under 11 U.S.C. § 548(a)(2). The church also appealed the denial of its motion to reconsider.
Ruling: 
Bankruptcy court erred in failing to determine if debtor was insolvent at time of charitable contributions trustee sought to avoid.
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Parks v. Scott (In re Steele)

A bankruptcy trustee filed an adversary proceeding pursuant to 11 U.S.C. § 548(a) to avoid an alleged fraudulent transfer by debtor to defendant domestic partner of the debtor's interest in a pickup truck, a boat, and a trailer (collectively referred to as the "property"). The trustee sought to avoid the transfer as it was without receipt of reasonably equivalent value while the debtor was insolvent.
Ruling: 
Trustee was entitled to recover debtor's equitable interest in vehicle fraudulent transferred to debtor's domestic partner.
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Dobin v. Hill (In re Hill)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant, the former spouse of a bankruptcy debtor, seeking to avoid transfers from the debtor to the spouse in a divorce settlement as fraudulent transfers under 11 U.S.C. § 548(a)(1)(A). The trustee asserted that the settlement was disproportionately favorable to the spouse and was intended to deprive creditors of the debtor's assets.
Ruling: 
Transfers to spouse in divorce settlement were deemed avoidable fraudulent transfers since the transfers disproportionately favored the spouse and were intended to deprive creditors of assets.
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Rieser v. Hayslip (In re Canyon Sys. Corp.)

Plaintiff chapter 7 trustee filed an adversary proceeding against several defendants, who were former investor clients of the debtor, seeking to avoid transfers from the debtor under both 11 U.S.C. § 548 and the Ohio Uniform Fraudulent Transfers Act ("UFTA") (exercising his "strong-arm" powers under 11 U.S.C. § 544(b)). The parties filed cross-motions for partial summary judgment.
Ruling: 
Transfers were deemed avoidable since they were made with actual intent to hinder, delay, or defraud creditors.
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Kapila v. WLN Family Ltd. Pship (In re LeNeve)

Plaintiff chapter 7 trustee, having established that debtor fraudulently operated numerous businesses as instrumentalities and alter egos of himself, completely disregarding the legal status thereof, sought to recover a total of $957,215 in purportedly fraudulent transfers received by defendant, an investor in debtor's schemes, pursuant to 11 U.S.C. § 548(a)(1)(A) and Fla. Stat. § 726.105(1)(a)
Ruling: 
Fraudulent transfer claims were dismissed since debtor received value in making transfers and was repaying investor with no shown fraudulent intent.
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In re Bryant

Debtors filed a motion to hold the IRS in contempt and impose sanctions for violating the discharge injunction of 11 U.S.C. § 524. The IRS moved to quash the debtors'motion.
Ruling: 
Court ordered the IRS to show cause why it should not be held in contempt for violating a discharge injunction by attempting postdischarge to collect trust fund taxes.
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Silverman v. Pauls Landmark Inc. (In re Nirvana Rest.)

Plaintiff, the chapter 7 trustee, commenced an adversary proceeding against defendant transferee to avoid, under New York law and 11 U.S.C. § 548(a), a guaranty given by debtor for the benefit of an affiliate, and to recover the rent payments made in connection with the guaranty. The matter was before the court for trial.
Ruling: 
Trustee was denied a motion to avoid a transfer of a guaranty under the Code and New York law since the trustee failed to show constructive fraudulence.
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