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Halpern v. Schwartz
United States Court of Appeals for the Second Circuit
426 F.2d 102 (2d Cir. 1970)
Creditors of Evelyn Halpern (defendant) filed an involuntary petition of bankruptcy against her, alleging three separate “acts of bankruptcy.” The district court found that she had committed all three acts of bankruptcy and the decision was affirmed on appeal. The trustee in bankruptcy, Schwartz (plaintiff), opposed Halpern’s discharge from bankruptcy because Halpern transferred a valuable bond and mortgage to her son “with intent to hinder, delay, or defraud her creditors.” Schwartz moved for summary judgment denying Halpern a discharge from bankruptcy on the ground that the issue of the intent behind the transfer had been decided in the initial bankruptcy case and was res judicata. The bankruptcy referee granted summary judgment to Schwartz and that decision was affirmed in the district court. Halpern appealed.
Rule of Law
Holding and Reasoning (Smith, J.)
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