Trustee wins preference action against creditor bank where Chapter 7 Debtor paid $190,595.50 to creditor bank on account of debt within 90 days of bankruptcy filing and also deposited $526,402.04 with same bank at the same time as payment. The bank tried to defend against the Trustee's adversary to recover the $190,595.50 payment by alleging it did not receive more than it would in a hypothetical liquidation scenario because if it had not been paid it would have had set-off

The Southern District of Florida Bankruptcy Court is allowing a Chapter 7 Trustee to go forward with his adversary proceeding to avoid transfers that occurred in 2005, which are time-barred under applicable Florida law. The Court found that section 544(b) is clear and allows a trustee to step into the shoes of the IRS and to pursue avoidance actions that the IRS, outside of bankruptcy, could have timely pursued on the petition date. For full case opinion, click here. #Chapt