Wallach v. Ford Motor Co. (In re Performance Transportation Services, Inc.)

OPINION AND ORDER REGARDING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

MICHAEL J. KAPLAN, Bankruptcy Judge.

The matter at the Bar seems to be one of first impression.

*63In 1938 and again in 1978 Congress tried to put an end to decades of judicial efforts to reconcile “setoffs” with “preferential transfers.” 11 U.S.C. § 553 was the legislative result. “... [T]his title does not affect the right of a creditor to offset.” It was no longer necessary to shoehorn setoffs into preference analysis. It works very well. However, sophisticated parties sometimes do not use setoffs when, perhaps, they should.

For…