(Bankr. W.D. Ky. Dec. 3, 2015)
The bankruptcy court grants the defendant’s motion for judgment in this preference action. The debtor received overpayments for disability benefits from the defendant in the years leading up to the bankruptcy. Within the preference period, the defendant had recouped some of the overpayment from the debtor’s active duty military pay. The court holds that the defendant was entitled to recoup the funds under the doctrine of recoupment, because the source of the defendant’s claims was a contract, and the debtor’s claims arose from the same contract. Opinion below.
Author: Matt Lindblom