By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) One of the most difficult situations faced by a debtor and debtors’ counsel is the repossession of important collateral securing a debt owed to a creditor. These items, such as automobiles, furniture, boats, and mowers which have been pledged to a creditor are important – often critical – to...
From the Editor – Avoidance
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By The Honorable William Houston Brown (Retired)
Section 547(c)(8) threshold applied. In a Chapter 13 case, one debtor’s employer withheld $858.98 as a result of prepetition wage garnishment, but the actual amount transferred to the judgment creditor was less than $600, with the remaining amount returned to the debtor after the creditor cancelled the garnishment. As a result, the aggregate amount was less than the $600 threshold of § 547(c)(8), preventing the avoidance of $572.78 transfer as a preference. Pierce v. Collection Associates, Inc. (In re Pierce), 504 . . .
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