Cardiello v. Casale (In Re Phillips Group, Inc.)

MEMORANDUM OPINION

BERNARD MARKOVITZ, Bankruptcy Judge.

The chapter 7 trustee seeks to limit the secured claim of defendants Philip Casale and Lorraine Casale to the amount of a judgment they obtained in a foreclosure action against property debtor Phillips Group, Inc. owned. Alternatively, the chapter 7 trustee seeks in accordance with the Pennsylvania Uniform Fraudulent Transfer. Act (“PUFTA”) to avoid a mortgage lien in favor of the Casales to the extent that debtor did not receive reasonably equivalent value in exchange for the mortgage.

The chapter 7 trustee also seeks a determination that…