Tag Archives: preference

Leases: Prebankruptcy Termination May Not Mean That the Landlord Is Out Of the Woods

Official Comm. of Unsecured Creditors v. T.D. Investments I, LLP (In re Great Lakes Quick Lube LP), 816 F.3d 482 (7th Cir. 2016) – A chapter 11 debtor relinquished 2 leases prior to filing bankruptcy. The unsecured creditors’ committee sought … Continue reading

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Bailment: Retaining Funds Received From a Bankrupt Bailee Is Not a Slam Dunk

In re Mississippi Valley Livestock, Inc., 745 F.3d 299 (7th Cir. 2014) – A debtor sold cattle for the account of a cattle producer and then remitted the proceeds to the producer.  A chapter 7 trustee sought to recover the payments as … Continue reading

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UCC Collateral Description: More May Not Be Better

Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.), 519 B.R. 586 (Bankr. W.D.N.Y. 2014) – A chapter 7 trustee sought to recover as preferences payments made by the debtor to a lender and proceeds of collateral liquidation received by … Continue reading

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Delayed Recording: Sometimes Late Is No Better Than Never

Collins v. JP Morgan Chase Bank, N.A. (In re Flannery), 513 B.R. 1 (Bankr. D. Mass. 2014) – A chapter 7 trustee sought to avoid as a preference a mortgage that was recorded within 90 days before a bankruptcy filing. The … Continue reading

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LLC Membership Transfer: Is Expulsion of a Member a Preferential Transfer?

Garcia v. Garcia (In re Garcia), 507 B.R. 434 (Bankr. E.D.N.Y. 2014) – Limited liability company (LLC) membership interests owned by a debtor were transferred to other LLC members after they expelled him shortly before his Chapter 11 bankruptcy. The … Continue reading

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Affiliates and Insiders: Is A Limited Liability Company A Corporation (And Who Cares)?

Redmond v. CJD & Assocs., LLC (In re Brooke Corp.), 506 B.R. 560 (Bankr. D. Kan. 2014) – A preference defendant sought to amend its answer more than 21 months after the answer was filed to deny its “insider” status. … Continue reading

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