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Bankruptcy Keyed to Epstein 6th Ed.
Langenkamp v. Culp
Citation:
498 U.S. 42 (1990)Facts
Republic Trust & Savings Company and Republic Financial Corporation were uninsured, nonbank financial institutions that filed Chapter 11 bankruptcy petitions on September 24, 1984. The respondents held thrift and passbook savings certificates issued by the debtors, representing the debtors’ promise to repay invested funds. Within the 90-day period immediately preceding the bankruptcy filing, respondents redeemed some, but not all, of their certificates. After the bankruptcy filing, respondents filed proofs of claim against the bankruptcy estates for their remaining investments. Approximately one year later, the trustee initiated adversary proceedings under 11 U.S.C. § 547(b) to recover the payments respondents had received before filing as avoidable preferences. The Bankruptcy Court ruled in favor of the trustee, finding the payments constituted avoidable preferences.
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