Liberty Mutual Insurance Co. v. New York (In re Citron)

428 B.R. 562 (2010)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Liberty Mutual Insurance Co. v. New York (In re Citron)

United States Bankruptcy Court for the Eastern District of New York
428 B.R. 562 (2010)

Facts

Jeffrey and Lynn Citron (debtors) were charged with defrauding Liberty Mutual Insurance Company (Liberty Mutual). Jeffrey pleaded guilty to five felony counts and was sentenced to imprisonment plus a $75,000 fine imposed by New York State (the state). Lynn pleaded guilty to a misdemeanor and was sentenced to three years’ probation. Lynn also agreed to pay $5,000 to the state by her sentencing date and $4,722 per month to the state throughout her probation period. On the Citrons’ December 2007 sentencing date, Lynn paid the $5,000. Lynn did not make her monthly payments in January and February 2008 but paid $9,000 on March 25, 2008. Jeffrey also paid his entire $75,000 fine on March 25, 2008. Two days later, the Citrons filed for Chapter 13 bankruptcy. Liberty Mutual, as fiduciary for the bankruptcy estate, sought to recover the Citrons’ March 2008 payments to the state as preferences. Lynn’s original $5,000 payment fell outside the window for recovery. The state conceded that the Citrons’ fine payments satisfied the statutory elements of preferences under 11 U.S.C. § 547 but asserted that the payments fell within the § 547(c)(1) preference exception for payments that constitute a contemporaneous exchange for new value.

Rule of Law

Issue

Holding and Reasoning (Trust, J.)

What to do next…

  1. 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 816,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. 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.

Here's why 816,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 816,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership