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IN RE MADIGAN

BAP No. CC-90-1149 VJMe, Bankruptcy No. SA88-04927JR, Adv. No. SA89-0604JR.

122 B.R. 103 (1991)

In re Francis William MADIGAN, Jr. and Laura Madigan, Debtors. Francis William MADIGAN, Jr. and Laura Madigan, Appellants, v. POTRANS INTERNATIONAL, INC., Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided January 4, 1991.

Attorney(s) appearing for the Case

David S. Brower, Santa Ana, Cal., for Francis & Laura Madigan.

Walter Tribbey, Ontario, Cal., for Potrans Intern., Inc.

Before: VOLINN, JONES and MEYERS, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

The appellee, Potrans International Inc. ("Potrans"), sued the debtor Francis W. Madigan1 in state court on a guaranty that was secured by a trust deed. Potrans did not seek to foreclose the trust deed in that action. Prior to bankruptcy, a default was entered against the debtor in the state court action, but no judgment was entered. After filing bankruptcy, the debtor sought to avoid the trust...

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