Leibowitz v. First Chicago Bank & Trust (In Re IFC Credit Corp.)

ORDER ON MOTION TO DISMISS THIRD PARTY COMPLAINT

(Docket No. 32)

JACQUELINE P. COX, Bankruptcy Judge.

In this matter the Debtor IFC’s Chapter 7 Trustee, David Leibowitz, (“Trustee”) has sued creditor First Chicago Bank and Trust (“FCBT”) in this adversary proceeding asking the court to avoid pursuant to 11 U.S.C. § 544 FCBT’s purported security interest in the Debtor’s leases and loan contracts financed by FCBT because the Debtor was allowed to remain in possession of the leases subject to the security agreement; to avoid pursuant to 11 U.S.C. § 547 FCBT’s lien against the leases as a…