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  • Preference, using a family members credit card


    Preference, using a family members credit card

    Some of Debtor’s payment to sister for her credit card use held to be a preference: Section 548 provides in relevant part: (a) The trustee may avoid any transfer of an interest of the debtor in property . . . that was made . . . within one year before the date of the filing of the petition, if the debtor voluntarily or involuntarily (2)(A) received less than a reasonably equivalent value in exchange for such transfer or obligation.

    Transfers made or obligations incurred solely for the benefit of third parties do not furnish reasonably equivalent value, . . . unless the debtor’s net worth is unaffected because [she] received a direct or indirect economic benefit from the transfer. In Re Guerrera, 225 B.R. 32 (Bankr. D. Conn. 1998)