(Bankr. W.D. Ky. Dec. 21, 2017)
The bankruptcy court enters judgment in favor of the trustee, finding a prepetition transfer from the debtor to her son was a fraudulent transfer under 11 U.S.C. §§ 547 and 548. The debtor had transferred her tax refund to her son for the purpose of paying certain bills and obligations of the son. The debtor did not receive reasonably equivalent value and the Court declines to adopt the “no harm, no foul” rule defense (i.e. wildcard exemption is not fully used, but could have been used for the subject funds). Opinion below.
Attorney for Trustee: Peter M. Gannott
Attorney for Defendant: Ross Benjamin Neuhauser
Author: Matt Lindblom