Marta Group, Inc. v. County Appliance Co. (In Re Marta Group, Inc.)

OPINION

EMIL F. GOLDHABER, Chief Judge.

The vortex of the controversy before us arises under the debtor’s complaint to collect an account receivable and centers on whether a creditor may set off its obligation to the debtor against a claim which the creditor holds against the debtor. Since the creditor’s claim against the debt- or is subordinate to the claims of all credi tors, the two obligations lack the requisite mutuality for set off thus entitling the debtor to judgment on the complaint.

The facts of this case, drawn largely from the parties’ stipulation of facts and an exhibit incorporated…