Idaho Court Avoids Imperfect Security Interest as Preference
Hopkins v. Dig. Fed. Credit Union (In re Parker), Nos. 14-40133-JDP, 16-8004-JDP, 2016 Bankr. LEXIS 3982 (U.S. Bankr. D. Idaho Nov. 15, 2016)
Debtor Jace Reed Parker purchased a 2010 vehicle, which was financed by a loan extended to him by Defendant Digital Federal Credit Union. Under the loan agreement, the vehicle was to serve as security for the loan. To perfect its security interest, the Credit Union prepared an application for issuance of a certificate of title to the vehicle noting its lien. However, imprudently, it gave the title application to the Debtor to file with the Idaho Transportation Department, which the Debtor never did. As a result, no certificate of title reflecting the Credit Union as a lienholder was ever issued for the vehicle. The Debtor made several monthly loan payments to the Credit Union, including three during the ninety days preference period. After the Debtor had filed for bankruptcy, the Trustee commenced the adversary proceeding to avoid the lien and the prepetition payments made by the Debtor to the Credit Union within 90 days of the bankruptcy.
The Court concluded that the Trustee was entitled to avoid and recover the payments made to the Credit Union on a vehicle loan of $354.56 per month, totaling $1,063.68, within the 90 days preceding the bankruptcy petition filing. The Court reasoned that it was uncontested that Credit Union’s security interest in the vehicle was not properly perfected under Idaho law as of the date of the Debtor’s bankruptcy filing because its lien was never noted on the vehicle’s certificate of title.
Creditors Sue Billionaire Blavatnik in Trial Over Lyondell Bankruptcy
New York, October 17, 2016 – Almost a decade after the ill-fated deal that created…Read More
Imperative to Meet Rule 9019 Standards For Courts to Approve Compromise Between the Parties
In re Stanfill, No. 3:15-bk-30233-SHB, 2016 Bankr. LEXIS 2535 (U.S. Bankr. E.D. Tenn. July 8,…Read More
New Jersey Court – Relevant Inquiry for Determining Ordinary Course Analysis is Whether Transactions Reflect Divergence from Industry Norms
Dots, LLC v. Milberg Factors, Inc. (In re Dots, LLC), 562 B.R. 286 (Bankr. D.N.J….Read More
Madoff Trustee May Not Clawback Monies From Koch Brothers
New York, November 23, 2016 – Koch Industries and others who invested in the Madoff…Read More
Preference Actions Filed in New Jersey in the Kid Brands Inc.’s Bankruptcy
New Jersey, June 16, 2016 – On June 16, 2016, the Official Committee of Unsecured…Read More