Texas Bankruptcy Court Holds Foreclosure Sale can be a Preferential Transfer | Practical Law

Texas Bankruptcy Court Holds Foreclosure Sale can be a Preferential Transfer | Practical Law

An update on the opinion from the US Bankruptcy Court for the Northern District of Texas in Whittle Development Inc. v. Branch Banking & Trust Co., holding that a prepetition foreclosure can be avoided as a preference if the foreclosing lender who credit bids at the foreclosure sale received more than it would have received in a Chapter 7 liquidation and if the foreclosure had not occurred.

Texas Bankruptcy Court Holds Foreclosure Sale can be a Preferential Transfer

Practical Law Legal Update 2-507-2321 (Approx. 4 pages)

Texas Bankruptcy Court Holds Foreclosure Sale can be a Preferential Transfer

by PLC Finance and Practical Law Bankruptcy & Restructuring
Published on 11 Aug 2011USA (National/Federal)
An update on the opinion from the US Bankruptcy Court for the Northern District of Texas in Whittle Development Inc. v. Branch Banking & Trust Co., holding that a prepetition foreclosure can be avoided as a preference if the foreclosing lender who credit bids at the foreclosure sale received more than it would have received in a Chapter 7 liquidation and if the foreclosure had not occurred.