Leventhal v. Spillman

DOOLING, District Judge.

The plaintiff trustee in bankruptcy sues to set aside as fraudulent the bankrupt’s conveyance in bulk to a newly formed corporation, all the stock of which was acquired by his wife, of all his business assets in return for the corpora tion’s agreement to pay the bankrupt’s business debts but none of the bankrupt’s numerous other creditors. The principal defenses are that the conveyance as a bulk “sale” was perfected in compliance with the Bulk Sales Act (former New York Personal Property Law, McKinney’s Consol.Laws, c. 41, § 44) and that the transfer was not fraudulent…