Quisenberry v. American State Bank (In Re Quisenberry)

MEMORANDUM OPINION

ROBERT L. JONES, Bankruptcy Judge.

Before the court is the adversary complaint filed by Betty Ballard Quisenberry (“Debtor”), seeking turnover of $11,165.64 from defendant American State Bank (“ASB”). Debtor alleges that ASB, prepetition, setoff $11,165.64 on deposit in Debtor’s checking account with ASB; that Debtor may avoid this alleged setoff either as an involuntary preference under section 547(b) or as an avoidable setoff under section 553(b); and that $11,165.64 is accordingly property of the estate which Debtor may partly exempt. ASB contends it had a valid security…