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IN RE HOLDER & NORTHERN LUMBER CO., INC.

Bankruptcy Nos. 380-02701, 380-02702, Adv. No. 382-0577.

37 B.R. 265 (1983)

In re HOLDER & NORTHERN LUMBER COMPANY, INC. and Holder & Northern Lumber Sales, Inc., Debtors, John C. McLEMORE, Trustee, Plaintiff, v. ASH McNEIL WELDING CO., et al., Defendants.

United States Bankruptcy Court, M.D. Tennessee.

September 5, 1983.

Attorney(s) appearing for the Case

William Robert Pope, Jr., Martin & Cochran, Nashville, Tenn., for plaintiff.

M. Edward Owens, Jr., Chambers, Johnson, Wyckoff & Beckner, Nashville, Tenn., for Lumberman's Mutual Insurance Company.

Henry Haile, Nashville, Tenn., for Management Assistance Co.

MEMORANDUM1

KEITH M. LUNDIN, Bankruptcy Judge.

The issue presented is when is a debt "incurred" for the purpose of determining the availability of 11 U.S.C.A. § 547(c)(2) (West 1979)2 as a defense in a preference action. For the reasons stated herein, the court holds that a debt is incurred for § 547(c)(2) purposes when the debtor becomes liable for the goods, services, or other performance...

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