Bankr. No.:
01-10166
Adv. No.:
01-1018
Chapter:
7
Date of Decision:
June 24, 2002
Issue:
Whether certain transfers by the debtors to the finance corporation were recoverable by the case trustee as either avoidable pre-petition preference payments under § 547(b) or as avoidable post-petition transfers under § 549(a)?
Ruling:
While the pre-petition transfers were preferential under § 547(b), they were not avoidable by the case trustee because the payments fell under the normal course of business exception at § 547(c)(2). Further, the post-petition transfers were not avoidable under § 549(a) to the extent that the transfers were of one debtor’s post-petition wages, which were not property of the Chapter 7 bankruptcy estate.
Full Bankruptcy Court Decision: