Bankr. No.:
87-10326
Adv. No.:
87-1042
Chapter:
12
Date of Decision:
July 7, 1988
Issue:
Whether an offset of ASCS payments owed to Debtors against a debt owed by Debtors to SBA is avoidable in Bankruptcy, where all administrative procedures necessary to establish right of setoff were completed prior to the 90 day pre-petition period, but the actual payment of the setoff by check occurred with the 90 day period?
Ruling:
Section 553(a) - governing creditor's rights. Section 101(50) - defines "transfer". In re Mason, 69 B.R. 876 (Bkrtcy. E.D. Pa. 1987); In re Jameson's Foods, Inc., 35 B.R. 433 (Bkrtcy. D.S.C. 1983); Matter of R & T Roofing Struct.& Commercial Fram., 79 B.R. 22 (1987); 2 Norton Bankruptcy Law and Practice, Section 32.01 (1981). Motion granted - setoff found to be voidable.
Full Bankruptcy Court Decision:
