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IN RE A. FASSNACHT & SONS, INC.

Bankruptcy No. 1-80-02267, Adv. No. 1-82-0130.

57 B.R. 174 (1986)

In re A. FASSNACHT & SONS, INC., Debtor. Richard P. JAHN, Jr., Trustee in Bankruptcy, Plaintiff, v. Suzanne FASSNACHT, Defendant.

United States Bankruptcy Court, E.D. Tennessee.

January 21, 1986.

Attorney(s) appearing for the Case

Richard P. Jahn, Jr., Jahn & Jahn, Chattanooga, Tenn., for plaintiff.

Thomas E. Ray, Ray & North, Chattanooga, Tenn., for defendant.

RALPH H. KELLEY, Bankruptcy Judge.

The trustee in the bankruptcy of A. Fassnacht & Sons, Inc., brought this suit against Suzanne Fassnacht to recover an "insider" preference. 11 U.S.C. § 547. As the statute applies to this case, the trustee can recover only if Suzanne Fassnacht had reasonable cause to believe the company was insolvent at the time of the transfer. 11 U.S.C. § 547(b). Trial was held first only on that issue.

The transfer in question...

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