- 11 U.S.C.
Reaves v. Comerica Bank-California (In re GTI Capital Holdings)
Aug
02
2007
Ruling
Collateralization of antecedent debt conferred new reasonably equivalent value upon debtor for transfer of interest in property.
Procedural posture
Defendant, a secured creditor of chapter 7 debtor, filed a motion for summary judgment in an action brought by plaintiff chapter 7 trustee, alleging that the creditor's late filing of UCC-1 Financing Statements constituted a preference or a fraudulent conveyance that should be avoided and recovered for the benefit of the estate pursuant to 11 U.S.C. §§ 544(b) and 548. The trustee filed a cross motion for summary judgment.
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Court
:
- 11 U.S.C.
Sullivan v. Schultz (In re Schultz)
May
14
2007
Ruling
Transfer of disabled debtor's inheritance into special needs trust was not avoidable.
Procedural posture
Plaintiff chapter 7 trustee brought a complaint seeking to avoid the transfer of debtor's inheritance from her grandmother into a special needs trust as a fraudulent transfer pursuant to 11 U.S.C. § 548, to recover the transfer from the special needs trustee pursuant to 11 U.S.C. § 550(a). The issue was whether debtor received reasonable equivalent value, for purposes of 11 U.S.C. § 548(a)(1)(B).
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Court
:
- 11 U.S.C.
Applewhite v. Akin (In re Akin)
Mar
20
2007
Ruling
Debtor's transfer of CD proceeds into childrens'bank accounts within one month prior to filing was avoidable.
Procedural posture
Plaintiff trustee filed a motion for partial summary judgment on his adversary complaint to avoid, pursuant to 11 U.S.C. § 548(a)(1), the transfers by defendant debtors of the proceeds from certificates of deposit (CDs) into bank accounts opened in the names of defendant children.
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Court
:
- 11 U.S.C.
Gredd v. Bear Stearns Sec. Corp. (In re Manhattan Inv. Fund Ltd.)
Jan
09
2007
Ruling
Transfers by debtor to brokerage firm with intent to hinder, delay or defraud creditors were avoidable.
Procedural posture
Chapter 11 trustee and defendant brokerage firm filed cross-motions for summary judgment in trustee's action, which sought to avoid margin payments deposited in debtor's account at the firm pursuant to 11 U.S.C. § 548(a)(1)(A).
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Court
:
- 11 U.S.C.
Brady v. Bestworth-Rommel Inc. (In re Johnson)
Nov
25
2006
Ruling
Creditor who released lien on land owned by corporation of which debtor was a shareholder in exchange for transfer by debtor was a subsequent transferee and transfer was not avoidable.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid an alleged transfer from the debtor pursuant to 11 U.S.C. § 548(a)(2) and to recover the amount of the transfer pursuant to 11 U.S.C. § 550(a) or (b).
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:
Colonial Bank v. Freeman (In re Pac. Forest Prods. Corp.)
Oct
17
2006
Ruling
Court granted motion for interlocutory appeal to determine if a Ponzi scheme was a check kiting scheme and whether such scheme established debtor intent to defraud.
Procedural posture
Appellee, a trustee in bankruptcy, brought an adversary proceeding against appellant banks in the bankruptcy court for the avoidance and recovery of fraudulent transfers under 11 U.S.C. §§ 544 and 548. The bankruptcy court granted the trustee's motion for a partial summary judgment, and the banks brought motions for leave to appeal the interlocutory order pursuant to 28 U.S.C. § 158(a).
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Court
:
- 11 U.S.C.
Fisher v. Moon (In re Fisher)
Oct
04
2006
Ruling
Duly noticed and conducted foreclosure sale for less than reasonable value was not a fraudulent transfer.
Procedural posture
Defendant county treasurer foreclosed on debtor's property for non- payment of property taxes. The total consideration received was the outstanding tax obligation of $1,843.75. Debtor and the chapter 13 trustee filed an avoidance action under 11 U.S.C. § 548(a)(1)(B), claiming the value of the property was approximately $68,000, and thus the transfer by the treasurer constituted a fraudulent conveyance. The parties moved for summary judgment.
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Court
:
- 11 U.S.C.
Drew v. MAK Inv. LLC (In re Drew)
Aug
17
2006
Ruling
Purchase of title for less than reasonably equivalent value was avoidable.
Procedural posture
Plaintiff, the chapter 7 trustee, brought suit seeking to avoid the prepetition transfer of the debtor's residence to a third party purchaser under 11 U.S.C. § 548, to collect damages pursuant to state law and the common law, treble damages plus fees and costs pursuant to the New Hampshire Consumer Protection Act ("NHCPA"), N.H. Rev. Stat. Ann. § 358-A. The purchaser argued it had paid "reasonably equivalent value"for the property.
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Court
:
- 11 U.S.C.
Midland Euro Exchange Inc. v. Swiss Finance Corp. (In re Midland Euro Exchange Inc.)
Aug
15
2006
Ruling
Fraudulent transfer provisions of Bankruptcy Code do not apply to foreign transfers.
Procedural posture
Plaintiff chapter 7 trustee brought an adversary proceeding against defendants, a foreign exchange brokerage and 10 unnamed defendants, to set aside and recover allegedly fraudulent transfers of at least $897,000 paid by debtor. Two claims for relief were brought under 11 U.S.C. §§ 548(a)(1)(A) and 550(a). The brokerage, a foreign company, moved to dismiss pursuant to Fed. R. Civ. P. 12(b)(6), made applicable by Fed. R. Bankr. P. 7012(b).
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Court
:
- 11 U.S.C.
Universal Church v. Geltzer
Jul
26
2006
Ruling
Bankruptcy court erred in failing to determine if debtor was insolvent at time of charitable contributions trustee sought to avoid.
Procedural posture
Appellant church, a nonprofit corporation, sought review of a judgment from the District Court for the Eastern District of New York, which held that the Religious Liberty and Charitable Donation Protection Act did not prevent appellee bankruptcy trustee from avoiding a chapter 7 debtor's donations to the church under 11 U.S.C. § 548(a)(2). The church also appealed the denial of its motion to reconsider.
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