This application was received by the State of Georgia on June 28, 1995. Debtors filed a Chapter 7 petition on September 1, 1995. Approximately one week after the Meeting of Creditors, Trustee requested, in writing, that GMAC provide a copy of its security agreement, note and certificate of title to verify its lienholder status. Numerous failed communications and settlement attempts between the parties ensued. As a result, Trustee filed this Adversary Proceeding on November 12, 1996.
Trustee seeks recovery of the value of the vehicle plus costs and pre-judgment interest.
Conclusions of Law Section 550 of the Bankruptcy Code outlines the remedies available when a lien is voidable as a preference. However, case law states holds that the purpose of this provision is to A restore the financial condition of the estate to the state in which it would have been had the transfer not occurred. It is within the discretion of the court as to whether this goal is best accomplished by awarding the value of the property interest transferred or the property interest itself. In re International Ski Serv. The terminology of the Code confuses this analysis.