Opinion ID: 3044232
Heading Depth: 1
Heading Rank: 1

Heading: issues

Text: The first issue on appeal is whether the post-petition refinancing of mortgages delinquently perfected during the preference period prevents a trustee from avoiding the preferential mortgages under Section 547 of the Bankruptcy Code. We conclude that a debtor’s post-petition refinancing of home mortgages does not impact a trustee’s ability to avoid the perfection of the mortgages as preferential transfers. The second issue on appeal is whether a trustee may obtain a money judgment under Section 550 of the Bankruptcy Code against entities who received preferential mortgages which are avoided under Section 547 of the Bankruptcy Code. We conclude that a trustee may obtain a money judgment against each recipient of an avoided preferential mortgage equal to the value of the preferential mortgage. 1 The Honorable Nancy C. Dreher, Chief United States Bankruptcy Judge for the District of Minnesota. 2