Manufacturers & Traders Trust Co. v. Walsh (In Re Burkett)

MEMORANDUM OPINION

BERNARD MARKOVITZ, Bankruptcy Judge.

Two matters are before the court at this time.

The chapter 7 trustee in the above bankruptcy case has brought a preference action against Manufacturers and Traders Trust Company (“M & T”) pursuant to § 547(b) of the Bankruptcy Code. He seeks to avoid and to recover from M & T for the benefit of the bankruptcy estate a mortgage against debtors’ farm which was “reinstated” by court order only eight days prior to commencement of this bankruptcy case.

M & T counters that the court order did not give rise to a transfer of debtors’ interest in the…