Hopkins v. Lang (In Re Carpenter)

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

In this action, the Court examines whether the retention of a security interest by the seller of a pickup truck to the debtor shortly before bankruptcy may be avoided by a trustee as a preference under § 547 1 of the Bankruptcy Code. The Court concludes that the transfer was indeed a preference, and that the exception to avoidance relied upon by the seller is inapplicable. As a result, the trustee may avoid the seller’s security interest.

Procedural Status of the Action

On March 12, 2007, Plaintiff R. Sam Hopkins, the chapter 7 trustee in…