Spradlin v. Inez Deposit Bank

DAVID A. NELSON, Circuit Judge.

This bankruptcy appeal presents a question as to the voidability of a residential mortgage that is claimed by the trustee in bankruptcy to constitute a preference under 11 U.S.C. § 547. The mortgage in question secures a loan some of the proceeds of which were used by the debtor to purchase his ex-wife’s marital interest in the residence and the remainder of which were used to repay the balance owed the mortgagee under an earlier mortgage on the property.

To be voidable under § 547(b), the transfer of a debtor’s property interest must, among other things, be on…