You are here

Allen v. Hancock (In re Tawney) (Case No. 02-04277; A.P. No. 03-00184) 3/29/2005

A deed of trust held by the debtor was conveyed to her for the sole purpose of being held as collateral for bond for the defendant in the defendant's criminal case.  Shortly before her bankruptcy filing, the debtor reconveyed the property back to the defendant.  The Chapter 7 trustee sought to recover the parcel of real estate pursuant to 11 U.S.C. § 548(a)(1)(B)(i)(ii)(I) as a fraudulent conveyance.  The Court held that the evidence supported the contention that the debtor never had an actual interest in the property but was merely a bailee for the defendant; thus, the debtor held no interest in the property which the trustee could recover under Section 548.  Accordingly, the Court denied the trustee’s motion to avoid the fraudulent conveyance.

Date: 
Tuesday, March 29, 2005
Category: 
Fraudulent Conveyance
Property of the Estate
Chapter: 
7