Summary Judgment Victory: Defense Against $1.95 Million Fraudulent Transfer Action In Chapter 7 Case

In a high-stakes bankruptcy dispute, the Chapter 7 Trustee brought claims against the defendant seeking to recover alleged fraudulent transfers totaling $1,950,000.00. The transfers were drawn from a joint bank account shared between the Debtor and his son, with the Trustee asserting that the funds constituted property of the bankruptcy estate.

We prepared a rigorous defense, demonstrating that the Debtor neither deposited any funds into the subject account nor exercised control over the account’s disbursements. Our legal team moved for summary judgment, arguing that the Trustee could not establish the transfers involved debtor-owned property. When pressed, the Trustee was unable to present any evidence to contradict the material facts that we established for the defendant.

The Court ruled entirely in the defendant’s favor, granting summary judgment and bringing the action to a prompt and successful close. This decisive result showcased our commitment to protecting our clients from unfounded bankruptcy litigation exposure.

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