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Preference Defense Question
Before bk filed, pay the small amount. After bk filed, whole enchalada.
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Feb 26, 2010, at 8:33 AM, "jbsesq1965" wrote:
I'm defending about 7 preference actions in 7 cases, all recently filed. Assume the debtors are not "consumer debtors" for this hypo.
Section 547(c)(9) says the trustee may NOT avoid a preference in a case involving a debtor that is not a consumer debtor if..."the aggretate value of all property that constitutes or is affected by such transfer is less than $5475".
If the total (aggregate) possible preference that one of my defendants recieved in the applicable preference period is $6000, can I tell the client to write a check for $525 and we are done? Or, is it once the preference threshold is reached ($5475), the whole enchilada ($6000) is recoverable?
The words "is affected by such transfer" seem to be a bit ambiguous. I admit I have yet to hit the books on this one and the answer may be readily available, just thought I'd ask the collective wisdom here.
Thanks
Jeff Smith
Before bk filed, pay the small amount. After bk filed, whole enchalada.Dennis McGoldrick350 S. Crenshaw Bl., #A207BTorrance, CA 90503On Feb 26, 2010, at 8:33 AM, "jbsesq1965" <jsmith@cgsattys.com> wrote:
I'm defending about 7 preference actions in 7 cases, all recently filed. Assume the debtors are not "consumer debtors" for this hypo.
Section 547(c)(9) says the trustee may NOT avoid a preference in a case involving a debtor that is not a consumer debtor if..."the aggretate value of all property that constitutes or is affected by such transfer is less than $5475".
If the total (aggregate) possible preference that one of my defendants recieved in the applicable preference period is $6000, can I tell the client to write a check for $525 and we are done? Or, is it once the preference threshold is reached ($5475), the whole enchilada ($6000) is recoverable?
The words "is affected by such transfer" seem to be a bit ambiguous. I admit I have yet to hit the books on this one and the answer may be readily available, just thought I'd ask the collective wisdom here.
Thanks
Jeff Smith
The post was migrated from Yahoo.
charset="windows-1251"
based on the c11 scuttlebutt, it seems to be that once the threshold is
reached you have to worry about the whole enchilada.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
jbsesq1965
Sent: Friday, February 26, 2010 8:34 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Preference Defense Question
I'm defending about 7 preference actions in 7 cases, all recently filed.
Assume the debtors are not "consumer debtors" for this hypo.
Section 547(c)(9) says the trustee may NOT avoid a preference in a case
involving a debtor that is not a consumer debtor if..."the aggretate value
of all property that constitutes or is affected by such transfer is less
than $5475".
If the total (aggregate) possible preference that one of my defendants
recieved in the applicable preference period is $6000, can I tell the client
to write a check for $525 and we are done? Or, is it once the preference
threshold is reached ($5475), the whole enchilada ($6000) is recoverable?
The words "is affected by such transfer" seem to be a bit ambiguous. I admit
I have yet to hit the books on this one and the answer may be readily
available, just thought I'd ask the collective wisdom here.
Thanks
Jeff Smith
charset="windows-1251"
Message
based on the c11
scuttlebutt, it seems to be that once the threshold is reached you have to worry
about the whole enchilada.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
Jeff, I believe it's the whole enchilada which is recoverable, not just the excess tortilla.
Jim
James R. Selth
Weintraub & Selth, APC
12121 Wilshire Boulevard, Suite 1300
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
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The post was migrated from Yahoo.
I'm defending about 7 preference actions in 7 cases, all recently filed. Assume the debtors are not "consumer debtors" for this hypo.
Section 547(c)(9) says the trustee may NOT avoid a preference in a case involving a debtor that is not a consumer debtor if..."the aggretate value of all property that constitutes or is affected by such transfer is less than $5475".
If the total (aggregate) possible preference that one of my defendants recieved in the applicable preference period is $6000, can I tell the client to write a check for $525 and we are done? Or, is it once the preference threshold is reached ($5475), the whole enchilada ($6000) is recoverable?
The words "is affected by such transfer" seem to be a bit ambiguous. I admit I have yet to hit the books on this one and the answer may be readily available, just thought I'd ask the collective wisdom here.
Thanks
Jeff Smith
The post was migrated from Yahoo.