Brian D. Lerner Immigration Attorney & Deportation Lawyer Blog

A new case : Where Chapter 7 debtor, prior to filing petition, assigned its accounts receivable to bank, but account-holder made payments directly to debtor instead of bank, and bankruptcy court later avoided bank’s security interest in a preference action by the trustee, bank was barred from proceeding in a separate action against the account-holder for amounts the account-holder paid to the debtor because the bank did not possess any claim separate and distinct from those which were adjudicated in the bankruptcy proceedings.

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