Murray v. Stacy Trust (In Re Goldberg)

RULING

LOUIS M. PHILLIPS, Bankruptcy Judge.

Background

This adversary proceeding, brought by the Chapter 7 trustee of the Lawrence D. Goldberg (Goldberg) bankruptcy estate, seeks avoidance of a prepetition purchase of a house from the Mae M. Stacy Trust (the Stacy Trust), pursuant to 11 U.S.C. § 548 and § 544(b), and recovery, under 11 U.S.C. § 550, of a $45,000 non-refundable deposit or down payment. The Goldberg trustee alleges that the transfer should be avoided under 11 U.S.C. § 548(a)(2) because it was made while Goldberg was insolvent and provided Goldberg with less than reasonably…