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Funds in bank account are bankruptcy asset until check clears: In re Borowiec

In re Borowiec Bk 07-04258 (Decision November 5, 2008; Judge Bucki, Buffalo). Debtor's property tax payment check cleared the bank four hours after the bankruptcy was filed. The trustee brought a turnover motion against the debtor. The court ruled that the actual property could not be turned over, as it had already been transferred, in good faith, to the tax collector, but that the debtor enjoyed "unjust enrichment" and granted a judgment in favor of the trustee.

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Peter R. Scribner, Esq.
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