United States Bankruptcy Court for the District of Connecticut
206 B.R. 8 (1997)
Wild Bills, Inc. (debtor) filed for reorganization under chapter 11 of the bankruptcy code. The chapter 11 case was later converted to a chapter 7 bankruptcy. Union Trust (creditor) was Wild Bills’s bank. Union Trust had made substantial loans to Wild Bills, and Wild Bills had funds deposited in Union Trust bank accounts. Ninety days prior to the filing, the debt owed by Wild Bills to Union Trust was $1,083,431 more than the amount Wild Bills had in its Union Trust deposit accounts. Two days later and 88 days prior to the bankruptcy filing, Wild Bills withdrew funds from its Union Trust account. The decrease in Wild Bills’s balance caused the difference between the amount owed by Wild Bills and the amount available to Union Trust in the deposit accounts to increase to $1,094,674. On January 25, Union Trust declared the loans in default and exercised its right of setoff against the deposit accounts. The bankruptcy trustee sought to recover from Union Trust under § 553(b) of the bankruptcy code, arguing that the setoff was a payment preference.
Rule of Law
Holding and Reasoning (Shiff, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 221,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.