Zabel v. Schroeder Oil, Inc. (In Re Zabel)

DECISION

JAMES E. SHAPIRO, Chief Judge.

This controversy stems from a $20,000 payment made to the defendant. Schroeder Oil, Inc., in June of 1999 from the sale proceeds of certain real estate owned by the plaintiffs (hereafter “debtors”). This was done in exchange for a release by Schroeder Oil of a junior mortgage which it held against the real estate and which was recorded in 1984. The $20,000 payment was made approximately 3% years after the debtors’ chapter 12 plan had been confirmed and which also occurred a few months after the debtors received their chapter 12 discharge. The payment and…