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§ 551

River City Resort, Inc., In re--Henry v. Est. of Casey

Ruling
Trustee's motion was granted with respect to the preservation of a lien for the benefit of theestate. (Bankr. E.D. Tenn.)
Issue(s)
Automatic Preservation of Avoided Transfer.

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Commercial opinion summary, case decided on March 31, 2022 , LexisNexis #0522-090

In re Dolven

Ruling
Trustee could not avoid and preserve proceeds of lien that did not exist on petition date.
Issue(s)
Could trustee avoid and preserve proceeds of a lien that had not been perfected as of the petition date?

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Consumer opinion summary, case decided on April 13, 2016 , LexisNexis #0516-091

Skumpija v. Warren (In re Skumpija)

Ruling
Sale order set aside as estate's interest in avoided deed of trust was a general unsecured claim and trustee's sale would be subject to four superior liens with little benefit to the estate.
Issue(s)
Should trustee, stepping into shoes of holder of avoided deed of trust, be able to sell property that was subject to four prior liens.

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Consumer opinion summary, case decided on November 19, 2013 , LexisNexis #1213-059

Parks v. Brooks (In re Brooks)

Ruling
Improperly perfected bank lien avoided.
Procedural posture

Trustee brought an adversary proceeding against defendant bank seeking to avoid the bank's lien against a bankruptcy debtor's exempt mobile home as unperfected, and to recover outstanding and future payments on the bank's loan to the debtor to finance the purchase of real property and the mobile home.

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Consumer opinion summary, case decided on July 14, 2011 , LexisNexis #0811-096

Grochocinski v. Shepar Capital LLC (In re CMGT Inc.)

Ruling
Statutory lien avoided due to improper service on debtor.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against judgment creditor, seeking a determination that the creditor failed to properly serve the debtor with a citation to discover assets and had no judgment lien against the debtor's assets. The creditor filed counterclaims alleging breach of contract, promissory estoppel, and laches, and the trustee and the creditor both moved for summary judgment.

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Commercial opinion summary, case decided on March 17, 2009 , LexisNexis #0409-054

Lowe v. Tex. Comptroller of Public Accounts (In re Crump)

Ruling
Trustee could not use section 551 to cure defective judgment lien.
Procedural posture

Appellant bankruptcy trustee sought judicial review of a bankruptcy court's order denying in part the trustee's motion to foreclose a preserved lien and an objection to proof of claim of appellee, the Texas Comptroller of Public Accounts (Comptroller). It was the denial of the motion to foreclose that the trustee appealed.

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Consumer opinion summary, case decided on August 15, 2007 , LexisNexis #1207-033

In re Brinley

Ruling
Unencumbered equity in abandoned property should be preserved for benefit of the estate.
Procedural posture

An unsecured creditor moved for an order finding that the unencumbered equity created by the avoidance of its judgment lien against certain property be preserved for the bankruptcy estate pursuant to 11 U.S.C. § 551. The debtor objected to the motion, arguing that section 551 was inapplicable and that the property in question had been technically abandoned as a result of the closing of the bankruptcy case.

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opinion summary, case decided on August 17, 2006 , LexisNexis #0906-029

Fugate v. Equity One Inc. (In er Graybeal)

Ruling
Erroneously released deed of trust could be preserved for benefit of estate over objection of junior lienholder.
Procedural posture

Chapter 7 trustee filed a motion for summary judgment in its action, which sought to preserve an avoided lien for the benefit of the estate pursuant to 11 U.S.C. § 551. Creditor filed a cross motion for summary judgment.

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opinion summary, case decided on August 17, 2006 , LexisNexis #0906-129

Morris v. St. John Natl Bank (In re Haberman)

Ruling
Bank was ordered to turn over to the trustee an amount equal to the value of a car as of the day the debtors filed for bankruptcy, leaving the bank with a general unsecured claim against the bankruptcy estate for the same amount.
Procedural posture

Plaintiff trustee sued defendant bank, seeking to avoid the bank's lien on the debtors'car. After the debtor paid off the balance the debtor owed, the bankruptcy court determined that the bank's lien was unperfected and the trustee could avoid it. The trustee then sought a determination in the postpetition payments.

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opinion summary, case decided on February 10, 2006 , LexisNexis #0306-095