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Trustee Using Costs of Sale in Preference Complaint Analysis
I do too, but have never seen it employed in a preference setting, where nominally (without costs of sale being taken into account), the junior is fully secured. Here, the trustee is saying that with costs considered, the second was rendered 85% undersecured. If his analysis is correct, I will then just have to fight him as to the value of the property. We had a full appraisal at the time of the filing for $810k, and the trustee's drive-by, done 18 months later was for 725k as of the date of the filing
Kenneth Jay Schwartz, Esq.
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To: cdcbaa@yahoogroups.com
Sent: Monday, March 16, 2009 9:29:05 AM
Subject: RE: [cdcbaa] Trustee Using Costs of Sale in Preference Complaint Analysis
On what basis is he going after the 2nd?
Is he arguing that the 2nd is wholly unsecured?
I use the cost of sale deductions all the
time when filing a 7 and reducing the equity amounts to get them under the
exemption limits.
M. Erik Clark
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791
www.blclaw.com
Office: (626) 332-8600
Fax: (626) 332-8644
Board Certified in Consumer Bankruptcy
American Board of Certification
________________________________
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On what basis is he going after the 2nd? Is he arguing that the 2nd is
wholly unsecured?
I use the cost of sale deductions all the time when filing a 7 and
reducing the equity amounts to get them under the exemption limits.
M. Erik Clark
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791
www.blclaw.com
Office: (626) 332-8600
Fax: (626) 332-8644
Board Certified in Consumer Bankruptcy
American Board of Certification
________________________________
The post was migrated from Yahoo.
Just received a Complaint in a Chapter 7 case wherein the trustee is suing the 2nd deed of trust holder, claiming that pre-petition payments to it were preferential. The only way he is able to make his numbers work for the preference allegations is to take out 8% [in this instance $58,000] as costs of sale. Unless I have been asleep, I do not recall anything anywhere that allows for this. Please correct me if I am wrong.
The post was migrated from Yahoo.