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Schaefer v. First National Bank

Schaefer v. First National Bank

Ruling
Constructively fraudulent mortgage avoided.
Procedural posture

Plaintiff chapter 11 debtors filed an adversary proceeding against defendants, a bank and a committee of unsecured creditors, seeking a judgment determining the validity and priority of liens against real property they owned. The committee filed a crossclaim against the bank, seeking to avoid a mortgage under 11 U.S.C.S. § 548(a)(1)(B), which the debtors gave the bank.

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Consumer opinion summary, case decided on October 15, 2009 , LexisNexis #1109-055