IN RE GIRARD

Bankruptcy No. 88-50015, Adv. No. 88-5042.

104 B.R. 817 (1989)

In re Jerry Sidney GIRARD and Wife, Lucy McPherson Girard, Debtors. Jerry Sidney GIRARD and Lucy McPherson Girard, Plaintiffs, v. UNILIFE INSURANCE COMPANY, Defendant.

United States Bankruptcy Court, W.D. Texas, San Antonio Division.

September 5, 1989.


Attorney(s) appearing for the Case

Lawrence A. Beck, Beck & Beck, P.C., San Antonio, Tex., for plaintiffs, Jerry Sidney Girard and Lucy McPherson Girard.

Richard E. Hettinger, Fred R. Jones, Sawtelle, Goode, Davidson & Troilo, San Antonio, Tex., for defendant, Unilife Ins. Co.


OPINION

RONALD B. KING, Bankruptcy Judge.

The basic issue presented in this adversary proceeding is whether a debtor may convey his homestead to a corporation, direct the corporation to use the property as collateral for a loan, and then invalidate the conveyance and lien as a sham transaction. The sole purpose of forming the corporation in this case was to avoid Texas constitutional and statutory prohibitions against...

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