In re Brown (04-32128)
The debtors owned and operated a poultry farm. Columbia Farms placed poultry on the farm and paid the debtors a production settlement. The debtors executed an Assignment authorizing and directing Columbia Farms to pay part of each production settlement to a certain creditor. The funds so deducted were to be jointly payable to the debtors and the creditor. The Court held that the Assignment was merely an authorization directing Columbia Farms to deduct and did not transfer any right, title or interest in the funds deducted to the creditor. The Court held that the funds at issue were property of the bankruptcy estate.
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Date:
Tuesday, May 3, 2005