IN RE C. HORSE FARM, INC.

Bankruptcy No. 85-02936G, Adv. No. 85-1038G.

62 B.R. 674 (1986)

In re C. HORSE FARM, INC. Jointly Administered with: Timothy W. Cole and Margaret Cole, Debtors. Margaret R. NOONE, individually and as Co-Executrix of the Estate of John J. Noone, Deceased, Plaintiff, v. Percy J. COLE and Madelaine W. Cole, Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

July 18, 1986.


Attorney(s) appearing for the Case

Desmond J. McTighe, Cheryl L. Young, McTighe, Weiss & Stewart, Norristown, Pa., for plaintiff, Margaret R. Noone, individually and as Co-Executrix of the Estate of John J. Noone, deceased.

Curtis P. Cheyney, III, Kevin Canavan, Swartz, Campbell & Detweiler, Philadelphia, Pa., for defendants, Percy J. Cole and Madelaine W. Cole.

Gary M. Perkiss, Joseph R. Pozzuolo Associates, Philadelphia, Pa., for debtors, Timothy W. Cole and Margaret Cole.

Jonathan Ganz, Pincus, Verlin, Hahn & Reich, Philadelphia, Pa., Trustee.


OPINION

EMIL F. GOLDHABER, Chief Judge:

The issue for resolution in this case is whether the recording of two judgment notes given by the debtors to close relatives, one year prior to bankruptcy, may be set aside under Pennsylvania's Fraudulent Conveyance Act, Pa.Stat.Ann. tit. 39, § 357 (Purdon 1954), on the basis that the transfers were made with intent to defraud. For the reasons set forth herein, we conclude that the transfers may be set aside....

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