Fraudulent Transfer and Preference Hypotheticals Strong Arm Hypotheticals 1. On June 1, Seller takes a security interest in D s business computer, but fails to file a UCC-1 financing statement to perfect that security interest. On September 1, Debtor files a bankruptcy petition.
Seller moves to lift the stay in order to repossess the computer, and trustee objects.
On September 1, D buys a business computer from Seller, who takes a purchase-money security interest to secure payment of the purchase price. On September 6, D files for bankruptcy protection. On September 7, Seller files a UCC-1 financing statement covering the computer. On September 18, Seller moves to lift the stay in order to repossess the computer, and trustee objects. Fraudulent Transfer and Preference Hypotheticals 1.