§ 550(a)

Askenaizer v. Wyatt (In re BeaconVision Inc.)

Plaintiff, the chapter 7 trustee, filed a complaint against various defendants who were alleged to have received funds from a $ 200,000 deposit to an escrow account made by the debtor as an anticipated loan commitment fee for a $ 2 million loan that was never completed. The $200,000 was distributed. The primary issue was which defendant was the initial transferee of the deposit for purposes of transferee liability under 11 U.S.C.S. § 550(a).
Ruling: 
Corporate lender was initial transferee of funds disbursed out of escrow deposit intended as commitment fee for debtor's loan.
ABI Membership is required to access the full summary of Askenaizer v. Wyatt (In re BeaconVision Inc.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Commercial case opionion summary, case decided on January 20,2009, LexisNexis #0309-068

Schnittjer v. Linn Area Credit Union (In re Sickels)

Plaintiff chapter 7 trustee filed an adversary proceeding pursuant to 11 U.S.C.S. § 544 against defendant creditor seeking to avoid the creditor's mortgage. The trustee asserted that the mortgage was not recorded prior to the petition date. The parties filed cross-motions for partial summary judgment.
Ruling: 
Trustee not entitled to money judgment once mortgage recorded in violation of stay had been avoided.
ABI Membership is required to access the full summary of Schnittjer v. Linn Area Credit Union (In re Sickels). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Consumer case opionion summary, case decided on July 11,2008, LexisNexis #0808-119

Terry v. Meredith (In re Meredith)

Appellant bankruptcy trustee brought an adversary proceeding against appellee, the president of a corporate successor of debtor, claiming that he was entitled to recover the value of certain assets fraudulently transferred from the bankruptcy estate, pursuant to 11 U.S.C.S. § 550(a)(1). The bankruptcy court and U.S. District Court for the Eastern District of Virginia, at Richmond, rejected the trustee's claim. The trustee appealed.
Ruling: 
Transfer of accounting practice from debtor to corporate successor was not recoverable from nominal president of successor who did not benefit from the transfer.
ABI Membership is required to access the full summary of Terry v. Meredith (In re Meredith). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Consumer case opionion summary, case decided on June 03,2008, LexisNexis #0708-032

Zimmerman v. Maney

Appellants, officers of a corporation that sold property of debtors, a married couple who filed a chapter 13, challenged an order of the Bankruptcy Court for the District of Arizona granting summary judgment to the chapter 13 trustee on a claim to avoid transfer of the property to defendants, including appellants and others, and holding said parties jointly and severally liable for the proceeds thereof per 11 U.S.C.S. § 550(a)(1).
Ruling: 
Bankruptcy court properly avoided transfer of balance of proceeds of estate property sale where no abandonment had occurred.
ABI Membership is required to access the full summary of Zimmerman v. Maney. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Consumer case opionion summary, case decided on April 30,2008, LexisNexis #0608-065

Sanders v. Quan Ky Hang (In re Hoa Ky Hang)

Plaintiff, the chapter 7 trustee, sought to avoid the transfer of the debtor's former residence and the proceeds from the refinancing and sale thereof, pursuant to 11 U.S.C. § 544(b), and to impose liability upon the defendant transferee, the debtor's son, under 11 U.S.C. § 550. The son's defense was that he gave reasonably equivalent consideration in exchange for the transfer.
Ruling: 
Contstructive trust imposed on house purchased by debtor's son with proceeds of sale of house preferentially transferred to him by debtor.
ABI Membership is required to access the full summary of Sanders v. Quan Ky Hang (In re Hoa Ky Hang). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Broadway Advisors LLC v. Hipro Elecs. Inc. (In re Gruppo Antico Inc.)

Defendant filed a motion for judgment on the pleadings in chapter 11 debtor's adversary proceeding, which alleged that transfers made by debtor to defendant within 90 days prior to the bankruptcy petition date were avoidable as preferences pursuant to 11 U.S.C. §§ 547(b) and 550.
Ruling: 
"Mere conduit" defense to avoidance applied to entity that forwarded debtor's payments to the company it serviced.
ABI Membership is required to access the full summary of Broadway Advisors LLC v. Hipro Elecs. Inc. (In re Gruppo Antico Inc.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Bakst v. Sawran (In re Sawran)

The debtor filed for relief under chapter 7. The trustee was granted a judgment on the pleadings for a preferential transfer that the debtor made to the father. The trustee filed a subsequent action to recapture money that the father had transferred to defendants, a son and daughter-in-law, and a daughter, as subsequent transferees under 11 U.S.C. § 550(a). The court issued findings and conclusions.
Ruling: 
Recovery of preferential payments from subsequent transferors allowed solely to the extent of postpetition payments to debtor.
ABI Membership is required to access the full summary of Bakst v. Sawran (In re Sawran). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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.
ABI Membership is required to access the full summary of Boyer v. Belavilas. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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.
ABI Membership is required to access the full summary of Kendall v. Carbatt (In re Carbatt). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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.
ABI Membership is required to access the full summary of Takena USA LLC v. Fisher. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Pages

Subscribe to § 550(a)