White v. Taylor (In Re Taylor)

GEORGE S. WRIGHT, Bankruptcy Judge.

MEMORANDUM OF DECISION

This matter came to trial before this Court on the Trustee’s complaint to have an unrecorded transfer of real estate declared null and void pursuant to 11 U.S.C. Sect. 544(a). This case illustrates the often unforseen difficulties which may be encountered in “creative financing” schemes. The issue to be decided is whether the possession of the disputed property by the transferees is sufficient notice to defeat the claim of the Trustee who under 11 U.S.C. Sect. 544(a), has the rights of a hypothetical judicial lien creditor or bona fide…