Geo. A. Clark & Son, Inc. v. Nold

I cannot agree that respondents as purchasers at a bankruptcy sale have standing to avoid appellant’s lien under the provisions of 11 U.S.C.A. § 107. The authorities cited in the majority opinion seem to me to compel the conclusion that only the trustee in bankruptcy may assert invalidity of liens under the provisions of § 107.

As the majority opinion states, the purposes of § 107 is to prevent one creditor from being preferred over other creditors of a bankrupt. This being the case, I can see no reason why a purchaser at any bankruptcy sale should be permitted to invalidate liens under the…