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Schafer v. Hilliard (In re Royal Tours Inc.)

Schafer v. Hilliard (In re Royal Tours Inc.)

Ruling
Unauthorized postpetition transfers could be avoided but not postpetition payments made to satisfy debt of non-debtor spouse.
Procedural posture

Bankruptcy trustee brought an adversary proceeding against transferee of funds from a bankruptcy debtor alleging that the transfers were avoidable as preferential transfers under 11 U.S.C.S. § 547, that certain transfers were avoidable as unauthorized postpetition transfers under 11 U.S.C.S. § 549. The trustee moved for summary judgment.

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Commercial opinion summary, case decided on March 01, 2013 , LexisNexis #0413-022