Feb
22
2008
In re Haberman
Appellant trustee filed an adversary action against appellees, bank and debtors, to avoid a security interest and preserve the avoided lien for the benefit of the estate. The bankruptcy court ruled that a trustee who voided a lien pursuant to 11 U.S.C.S. §§ 544 and 551 took for the bankruptcy estate only the value of the lien itself. The United States Bankruptcy Appellate Panel for the Tenth Circuit affirmed. The trustee appealed.
Ruling:
Lien avoidance preserved only value of lien itself for the estate, not other rights.
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Consumer case opionion summary, case decided on February 22,2008, LexisNexis #0308-099