The title was not assigned until March 31, 1988. The Banks lien is marked canceled December 16, 1987. The agreement between the debtors and the Bank make it clear, and the parties in their briefs concede, that no setoff occurred. Therefore, the rights of the parties are not determined by Section 553 of the Code. Instead, the Trustee properly relies solely Section 547 of the Code which avoids certain preferential transfers.
Bank concedes all but the fifth element.
To apply this prong of the test the Court must compare what the creditor received as a result of the challenged transfer, plus any additional recovery the creditor would receive in bankruptcy, against what the creditor would have recovered in a Chapter 7 bankruptcy had the transfer not been made. See 4 Collier on Bankruptcy para. The following is what Bank would receive in Chapter 7 had the transfer not occurred. Since this is a no asset case, the filing of proofs of claim has not even been allowed. The difference between the two amounts was a preference to the Bank which must be returned to the Chapter 7 Trustee.