Consumers Credit Union v. Widett (In Re Health Gourmet, Inc.)

MEMORANDUM

JAMES N. GABRIEL, Bankruptcy Judge.

Before the Court is the Motion for Summary Judgment of the Plaintiff, Consumers Credit Union, (“Consumers” or “the Bank”) on its Complaint to determine secured status with respect to the property of the debtor, Health Gourmet, Inc. (“Health Gourmet” or “the debtor”). The trustee opposes summary judgment and seeks to avoid the security interest as a fraudulent conveyance under bankruptcy and state law. Subsequent to the filing of the complaint and upon agreement of the parties, the court ordered a sale of the debtor’s assets with valid liens to…