New Jersey Bankruptcy Court Dismisses Debtor’s Complaint, Transfer Date of Property ‘Relates Back’ to Date Its Predecessor Filed Lis Pendens
February 10, 2021, District of New Jersey – Debtor-Plaintiff Jennifer Stahlberger seeks to avoid the transfer of her real property to Defendant PF Elisson, LLC (“PF Elisson”) on the basis that the transfer constituted a preference and/or a constructively “fraudulent transfer.”
PF Elisson filed a motion to dismiss, arguing that the date of the transfer of the property relates back to the date a lis pendens was filed – making the transfer more than two years before the Debtor’s filing of bankruptcy. Further, Defendant also alleged that the Debtor’s complaint failed to state a claim upon which relief can be granted. The Debtor opposed.
The Court found that the date of the transfer of the property relates back to the date a lis pendens was filed. The transfer took place more than two years before the filing of bankruptcy. Thus, the Court held that neither the preference nor “fraudulent transfer” claims can succeed and dismissed the Debtor’s complaint.
Stahlberger v. PF Ellison (In re Stahlberger), Nos. 20-23388-ABA, 20-1627-ABA, 2021 Bankr. LEXIS 334 (Bankr. D.N.J. Feb. 10, 2021)