IN RE ARNETT

Bankruptcy No. 1-81-00409, Adv. No. 1-81-0232.

13 B.R. 267 (1981)

In re Burton Lewis ARNETT and Charlotte Joan Arnett, Debtors. Thomas E. RAY, Trustee, Plaintiff, v. SECURITY MUTUAL FINANCE CORPORATION, American National Bank and Trust Company of Chattanooga, Burton Lewis Arnett and Charlotte Joan Arnett, Defendants.

United States Bankruptcy Court, E.D. Tennessee.

August 11, 1981.


Attorney(s) appearing for the Case

Thomas E. Ray, Chattanooga, Tenn., for plaintiff.

Andrew F. Bennett, Jr., Cleveland, Tenn., for defendant, Security Mutual Finance Corp.

Richard J. McAfee, Chattanooga, Tenn., for defendant, American National Bank and Trust Co. of Chattanooga.

B. Prince Miller, Jr., Cleveland, Tenn., for defendants, Burton Lewis and Charlotte Joan Arnett.


RALPH H. KELLEY, Bankruptcy Judge.

On December 10, 1980, the debtors obtained a loan from defendant, Security Mutual Finance Corporation, and granted it a security interest in an automobile. The security interest was not perfected until January 12, 1981, which was within 90 days of bankruptcy.

Debtors' trustee in bankruptcy filed this complaint seeking to avoid the grant of the security interest as a preferential transfer that occurred when the security interest...

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