In re Horn
United States Bankruptcy Court for the Southern District of Ohio
606 B.R. 747 (2019)
- Written by Brianna Pine, JD
Facts
In September 2017, Danny Horn conveyed real property located in Ohio to his son and daughter-in-law, Jeffery and Dena Horn (debtors), so they could use it as collateral for a loan. One year later, as Jeffery and Dena prepared to file for bankruptcy, they executed a deed transferring the property back to Danny. Danny then attempted to complete the recording process by paying back taxes and obtaining the necessary endorsements from county officials. However, he failed to actually record the deed until February 2019, more than three months after Jeffrey and Dena filed for Chapter 7 bankruptcy. The bankruptcy trustee filed a motion for summary judgment, seeking to exercise his strong-arm powers under 11 U.S.C. § 544(a)(3) to avoid the unrecorded transfer, bring the property back into the bankruptcy estate, and sell it for the benefit of the Horn’s unsecured creditors.
Rule of Law
Issue
Holding and Reasoning (Hoffman, J.)
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