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MATTER OF FAITA

Bankruptcy No. 2-92-00587.

164 B.R. 6 (1994)

In the Matter of Frank J. FAITA, Nevina M. Faita, Debtors.

United States Bankruptcy Court, D. Connecticut.

February 15, 1994.

Attorney(s) appearing for the Case

Andrew W. Bray, Torrington, CT, for trustee.

Joel M. Grafstein and Susan M. Williams, Grafstein & Associates, Farmington, CT, for debtors.

Jack V. Genovese, II, Genovese, Newman & D'Attelo, West Hartford, CT, for Firemen's Fund Ins. Co., creditor.

William C. Franklin and Eric A. Russman, Cramer & Anderson, Litchfield, CT, for Litchfield Bancorp, creditor.

MEMORANDUM OF DECISION ON TRUSTEE'S MOTION FOR PARTIAL DISTRIBUTION OF FUNDS

ROBERT L. KRECHEVSKY, Chief Judge.

I.

ISSUES

The present motion raises two issues — the first is whether a debtor's no-fault automobile insurer who, prepetition, pays basic reparations benefits to the debtor is entitled to assert a statutory lien on the settlement proceeds received by the trustee, postpetition...

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