Covey v. United Federal Savings & Loan Ass'n (In Re Owen)

ORDER

MIHM, District Judge.

In this bankruptcy appeal, the Court is asked to resolve two issues:(1) Was either the sale of the Debtor’s residence, or the payment of a creditor’s previously unsecured claim, within 90 days of the filing of the bankruptcy petition, a transfer for the benefit of that creditor?(2) Can the transfer of exempt property be a voidable preference under Bankruptcy Code § 547(b)?

Although the Bankruptcy Court answered each of these questions in the negative, this Court finds that the Bankruptcy Court erred on both grounds and reverses the Bankruptcy Court’s decision.

FACTS

This…