Traders Bank of Kansas City v. Stonitsch (In Re Isis Foods, Inc.)

FINDINGS OF FACT, CONCLUSIONS OF LAW, AND FINAL JUDGMENT GRANTING PLAINTIFF’S COMPLAINT FOR RELIEF FROM THE AUTOMATIC STAY TO EFFECT PROPOSED SETOFF

DENNIS J. STEWART, Bankruptcy Judge.

The plaintiff seeks relief from the automatic stay to effect a postbankruptcy setoff on account of a prebankruptcy loan made to the debtor Isis Foods, Inc. The defendant defends the complaint on the grounds that relief from the stay is not appropriate because there is not mutuality of the proposed setoff and accordingly also counterclaims for turnover of the funds in the bank.

The action came on before the court…