§ 550

Boyer v. Belavilas

Appellants, a mother and two minor children, appealed from the District Court for the Northern District of Indiana, which affirmed the bankruptcy judge's order holding making the mother, father, and children jointly and severally responsible for paying $183,130 to the bankruptcy estate from custodial accounts established under the Uniform Transfers to Minors Act ("UTMA"). Appellee trustee opposed the appeal.
Ruling: 
Transfer of insurance proceeds to minor childrens'trust and then to entities controlled by debtor was recoverable.
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Kendall v. Carbatt (In re Carbatt)

Chapter 7 trustee sought to avoid the prepetition transfer by debtor to defendant ex-wife of his interest in their family home and in an unsecured promissory note pursuant to 11 U.S.C. §§ 548(a) and 544(b). He also sought to recover the transfers or their value from the wife pursuant to 11 U.S.C. § 550(a)(1) and , with respect to his interest in the house, from defendant, the wife's mother, as a subsequent transferee pursuant to section 550(a)(2).
Ruling: 
Transfer of marital home to former spouse for reasonably equivalent value was not avoidable nor was subsequent transfer from former spouse to her mother.
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Maxwell v. Michigan Fid. Acceptance Corp. (In re Maestas)

In a prior adversary proceeding, plaintiff chapter 7 trustee obtained a default judgment against defendant creditor that avoided a refinanced mortgage a preferential transfer. The trustee filed the instant adversary proceeding to recover against the creditor a money judgment, pursuant to 11 U.S.C. § 550, equal to the value of the avoided transfer. The creditor filed a motion to dismiss or, in the alternative, for judgment on the pleadings.
Ruling: 
Adversary proceeding to recover money judgement was not barred by res judicata where trustee had successfully pursued avoidance proceeding.
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Abell v. Devan

Appellants sought review of an order entered by the bankruptcy court denying them recovery for payments they made to the mortgage holder on the home of debtor.
Ruling: 
Alleged purchaser's of debtor's home were not entitled to recover payments to debtor's mortgagee due to indicia of fraud surrounding "sale."
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Takena USA LLC v. Fisher

Appellee chapter 7 trustee filed an application in the bankruptcy court for appointment of a receiver to monitor the operations of appellant, the purchaser of assets that had belonged to a chapter 7 debtor. The bankruptcy court granted the application and waived the bond requirement under 735 Ill. Comp. Stat. 5/2-415(a). The purchaser appealed.
Ruling: 
Bankruptcy court properly appointed receiver in case involving allegedly fraudulent transfers of intangible assets.
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In re Spencer

Movant bankruptcy trustee sought an order requiring debtors to turn over funds that, the trustee alleged, remained in their bank accounts on the date of their bankruptcy petition. Debtors objected that they had written checks or otherwise committed the funds prior to filing their petition and were under no duty to turn over the funds to the trustee because the trustee had authority to recover the funds from the various payees.
Ruling: 
Trustee's motion for turnover was granted since debtors were liable to estate for transfer of estate assets resulting from postpetition honoring of prepetition checks.
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Caillouet v. First Bank and Trust (In re Entringer Bakeries)

The debtor filed a voluntary petition for relief under chapter 11, which was subsequently converted to a chapter 7 case. Plaintiff trustee filed an adversary proceeding against defendant creditor, seeking to avoid alleged preferential transfers under 11 U.S.C. § 547(b) and seeking to recover such amount from the creditor as an initial transferee under 11 U.S.C. § 550.
Ruling: 
Trustee was entitled to recover preferential transfer from creditor in amount estate was diminished by net proceeds of sale of debtor's property.
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Enron Corp. v. Intl Fin. Corp. (In re Enron Corp.)

Plaintiffs, reorganized debtors, commenced an adversary proceeding against defendant mediate transferees to avoid certain transactions, pursuant to 11 U.S.C. § 548, and to recover the assets that were transferred pursuant to 11 U.S.C. § 550(a). The mediate transferees filed a motion to dismiss.
Ruling: 
Complaint against mediate transferees to avoid certain transactions and recover the assets was dismissed because the debtors had to first seek to avoid transfers to the initial transferee.
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Schechter v. 5841 Bldg. Corp. (In re Hansen)

Plaintiff, the chapter 7 trustee, filed an adversary proceeding under 11 U.S.C. § 548 against defendants, a corporation that was the transferee of debtor's payments, the subsequent recipient of the payments, and the president of both of those entities, to recover debtor's payments as fraudulent transfers. Following the close of discovery, the entities' president moved for summary judgment.
Ruling: 
President of a corporate transferee of debtor payments was granted summary judgment on fraudulent transfer claim since the president was not the "initial transferee" and did not benefit from the transfer.
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Shapiro v. Art Leather Inc. (In re Connolly N. Am. LLC)

Plaintiff trustee sued defendant accounts receivable seller pursuant to 11 U.S.C. § 550(a)(1), seeking to avoid and recover six prepetition payments that the chapter 7 debtor made to the purchaser of defendant's accounts receivable. Defendant moved for summary judgment.
Ruling: 
Summary judgment regarding avoidance and recovery claim was denied since issues of fact existed as to whether creditor benefitted from the transfers.
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