Huntzinger v. Security State Bank (In Re Huntzinger)

MEMORANDUM 1

JOHN T. FLANNAGAN, Bankruptcy Judge.

William H. Griffin, the Standing Chapter 13 Trustee, alleges he can avoid Security State Bank’s security interest in a contract for deed on real property. The debtors, Beverly A. and William V. Huntzinger, granted the security interest in their sellers’ interest in the contract. Mr. Griffin relies on his status as a hypothetical lien creditor under § 544(a)(1). The court finds for the trustee because the bank failed to perfect its security interest.

Findings of Fact

William and Beverly Huntzinger sold real estate in Wellington, Kansas, to Lois…