Taylor v. Industrial Valley Bank (In Re Taylor)

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The issue before us is whether a transfer of eight hundred dollars prior to bankruptcy by the debtor to a creditor is avoidable by the debtor pursuant to §§ 522(h) and 547(b) of the Bankruptcy Code. We conclude that the debtor has established all the elements required to avoid the transfer.

The facts of the instant case are as follows: 1 On October 17, 1978, Gloria J. Taylor (“the debtor”) borrowed the sum of $2,900.00 from the Industrial Valley Bank (“IVB”) and granted IVB a security interest in her automobile. The debtors used the loan to extinguish…