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Trustee John S. Lovald v. Credit Collections Services (In re Deborah Maxwell)

Bankr. No.: 
97-40596
Adv. No.: 
99-4022
Chapter: 
7
Date of Decision: 
December 3, 1999
Issue: 
Whether creditor's pre-petition, preferential garnishments could be avoided by the trustee where total sum of checks cashed by the creditor were less than $600?
Ruling: 
The trustee could not avoid the preferential transfer. Since the checks cashed by the creditor totaled less than $600, the funds were excepted from the trustee's voiding powers under 11 U.S.C. § 547(c)(8). The other garnishments checks received but not cashed pre-petition by the creditor were not added to the total for the application of § 547(c)(8).
Full Bankruptcy Court Decision: