Sarkis v. American State Bank of Rapid City (In Re Sarkis)

MEMORANDUM DECISION

PEDER K. ECKER, Bankruptcy Judge.

Philip Joseph Sarkis, hereinafter Debtor, filed a complaint for turnover of property of the estate pursuant to 11 U.S.C. § 542(a). Debtor alleges The American State Bank of Rapid City, hereinafter Creditor, wrongfully set off Debtor’s checking account on the eve of bankruptcy. Creditor’s Answer alleges it has a promissory note upon which a judgment was entered, a right of offset to all bank accounts held by Creditor, and that Creditor is secured.

FINDINGS OF FACT

On November 6, 1980, Debtor executed a promissory note in favor of Creditor for…