McKinstry v. B&H Contractors, LLC (In re GC London KY Inc.)

(Bankr. E.D. Ky. Oct. 11, 2017)

The bankruptcy court enters judgment in favor of the Chapter 11 trustee, holding the trustee is entitled to recover approximately $280,000 in post-petition transfers and recover $40,000 in prepetition payments. The debtors repaid a post-petition loan that was not approved by the bankruptcy court and which was not in the ordinary course. The prepetition payments were preferential and the new value defense and ordinary course defenses do not apply. Opinion below.

Judge: Schaaf

Attorney for Trustee: Fowler Bell PLLC, Matthew D. Ellison

Attorneys for Defendant: Giodano, Halleran & Cisela, P.C., Donald F. Campbell, Jr.; Bingham Greenebaum Doll, James R. Irving, April A. Wimberg

2017-10-11 – in re gc london ky

Author: Matt Lindblom

Lynn v. Pry

(S.D. Ind. Feb. 3, 2016)

The district court affirms the judgment of the bankruptcy court, avoiding the post-petition transfer of real property. The debtor’s father had transferred real estate to the debtor’s entity prior to the bankruptcy to avoid attachment by creditors. Post-petition, the debtor’s father recorded a deed transferring title back to himself. The father claimed that it was never his or the debtor’s intent for the debtor to have title to the property. The fact that title was transferred to avoid the father’s creditors was sufficient evidence of intent to transfer title, and thus the post-petition transfer from the estate was improper. Opinion below.

2016-02-03 – lynn v pry

Author: Matt Lindblom