Opinion ID: 2647462
Heading Depth: 6
Heading Rank: 1

Heading: the later of –

Text: (A) 2 years after the entry of the order for relief; or 19 cause of action accrues as of that date. See 11 U.S.C. § 546. If Congress had intended to allow for post-petition transactions to affect the impact on the estate, it is likely that it would have crafted a different statute of limitations. The fact that the statute of limitations for a preference avoidance action under § 547 generally begins on the petition date suggests that the calculation of preference liability should remain constant post-petition. If we read § 547(c)(4)(B) to allow post-petition payments to defeat a new value defense, the calculation of preference liability could change depending on when the preference avoidance action was filed. Fourth, Appellee argues that extending the preference analysis past the petition date would be inconsistent with the “improvement-in-position” test articulated in § 547(c)(5). This provision provides a defense from preference liability for a creditor with a floating lien on a debtor’s inventory and receivables, so long as the creditor did not improve its position during the preference period. Notably, the provision (B) 1 year after the appointment or election of the first trustee . . . if such appointment or such election occurs before the expiration of the period specified in subparagraph (A); or