Waldschmidt v. Miracle Motors (In Re Haynes)

MEMORANDUM

KEITH M. LUNDIN, Bankruptcy Judge.

The trustee seeks to avoid a security interest in an automobile and to recover payments made by the debtors as allegedly preferential transfers. The elements of a preference are present and not in dispute. The only issue remaining is whether the defendant, Miracle Motors, perfected its security interest within 10 days and, therefore, is protected by the exception to the trustee’s avoiding powers contained in 11 U.S.C.A. § 547(c)(3) (West 1979). The defendant submits that it applied through the county clerk for a certificate of title noting its lien…