KH Funding Co. v. Escobar (In re KH Funding Co.)

MEMORANDUM OF DECISION

THOMAS J. CATLIOTA, U.S. BANKRUPTCY JUDGE

Debtor-plaintiff KH Funding Company brings this preference action against defendant Aida Escobar seeking to recover $134,717.15 of payments made to her during the twelve month period ending on the petition date. At the conclusion of a two day trial held on October 14 and 30, 2015, defendant conceded that plaintiff established all elements of a preference claim under 11 U.S.C. § 547(b)(1)-(5). At issue is whether defendant is entitled to an ordinary course defense under § 547(c)(2). For the reasons stated herein, the court…