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In re Stewart

274 B.R. 503 (2002)

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In re Stewart

United States Bankruptcy Court for the Western District of Arkansas

274 B.R. 503 (2002)

Facts

Gary Stewart (debtor) purchased cattle from Barry County Livestock Auction, Inc. (Barry) (creditor) on January 29, 2000. On that day, Barry issued an invoice for the sale to Stewart, Stewart gave a personal check to Barry to pay for the cattle, and Barry delivered the cattle to Stewart. One month later, Stewart’s personal check was returned to Barry by the bank for insufficient funds. Stewart then gave Barry a cashiers’ check to satisfy the purchase price of the cattle. Stewart filed for chapter 13 bankruptcy on April 11, 2000. The bankruptcy trustee sought to avoid the transfer of the cashier’s check as a preferential transfer under 11 U.S.C. § 547(b).

Rule of Law

Issue

Holding and Reasoning (Fussell, J.)

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