M.D.F., Inc. v. Travelers Insurance Co. (In Re M.D.F., Inc.)

MEMORANDUM DECISION

THOMAS C. BRITTON, Bankruptcy Judge.

In these two adversary proceedings, the debtor seeks avoidance under 11 U.S.C. § 547(b) of seven “transfers” by garnishment. The defendants have answered and the two cases were tried together on March 20.

Unlike the former Act, the present Code does not expressly authorize the avoidance of liens which attach during the preference period. However, the omission was not intended to exclude liens from avoidance under § 547. As stated in Collier on Bankruptcy (15th ed.) ¶ 547.12[1]:

“Likewise, it would appear that any type of legal or equitable…