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IN RE STEPHENS

No. 99-1266-WEB. Bankruptcy No. 97-14633-7.

242 B.R. 508 (1999)

In re Michael Ray STEPHENS, and Jolynn Stephens, Debtors. J. Michael Morris, Trustee, Appellant/Cross-Appellee, v. Chisolm Trail State Bank; Michael Ray Stephens; and Jolynn Stephens, Appellees/Cross-Appellants.

United States District Court, D. Kansas, Wichita Division.

November 19, 1999.

Attorney(s) appearing for the Case

Garry L. Howard, Slape & Howard, Chartered, Wichita, KS, for debtor.

J. Michael Morris, Klenda, Mitchell, Austerman & Zuercher, L.L.C., Wichita, KS, for appellant.

David M. Rapp, Hinkle Elkouri Law Firm, L.L.C., Wichita, KS, J. Scott Pohl, Hinkle, Eberhart & Elkouri, L.L.C., wichita, KS, for appellee.

Anne L. Baker, Wright, Henson, Somers, Sebelius, Clark & Baker, L.L.P., Topeka, KS, for Kansas Bankers Association.

Memorandum and Order

WESLEY E. BROWN, Senior District Judge.

This is an appeal from a judgment of the bankruptcy court denying the trustee's complaint to avoid an alleged preferential transfer under 11 U.S.C. § 547(d). The dispute concerns whether the debtors' grant of a security interest in their vehicle to the Chisolm Trail State Bank is avoidable as a preferential transfer. The interest was granted by the debtors in exchange for a loan to...

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