In re Alpha Proctective Services, Inc. (Ch. 7 Case No. 12-70482, Adv. No. 14-07033)

In these cases, the Chapter 7 Trustee sought to avoid pre-petition payments made to insiders pursuant to 28 U.S.C. § 3304(a)(2).  After an extensive trial, the Court ruled in favor of the Defendants.  Although the Court found the Debtor was insolvent at the time it made the payments, the Court did not find the Trustee met his burden to show the insiders had reasonable cause to believe the Debtor was insolvent.  The opinion discusses the legal standards and the evidence presented by the parties.

Friday, October 12, 2018