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Jahn v. U.S. Xpress Inc. (In re Transcommunications Inc.)

Jahn v. U.S. Xpress Inc. (In re Transcommunications Inc.)

Ruling
Payments withheld by creditor for debtor's telephone services were not avoidable to the extent they consituted a setoff for overcharges.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant creditor, alleging that a lack of payment by the creditor for the debtor's telecommunications services during the 90 days prior to the debtor's bankruptcy petition constituted a setoff which was avoidable by the trustee pursuant to 11 U.S.C. § 553. The bankruptcy court conducted a trial.

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opinion summary, case decided on December 04, 2006 , LexisNexis #0107-022