In re Fluellen (Adv. No. 10-05108, Case No. 10-52284)

The Chapter 13 trustee filed an adversary proceeding to avoid as a preferential transfer the perfection of the creditor's security interest on the debtor's car. The creditor contends that res judicata barred the action because it was filed after confirmation of the Chapter 13 plan. The court held that the action was barred because the trustee knew about the defect in perfection prior to confirmation and that the plan treated the creditor's claim as a secured claim.

Friday, March 18, 2011