Texas Trustee Launches $500k plus Preference Case
May 14, 2022, Bankruptcy Court for the Southern District of Texas – Christopher Murray, the chapter 7 trustee (the “Trustee”) for the estate of Hidalgo County Emergency Service Foundation (the “Debtor”) brings adversary complaint against Defendant Jose Luis Trejo (“Trejo”) to avoid and recover preferential transfers from the Debtor to Trejo, made within 90 days prior to October 8, 2019, the date on which Debtor filed its petition (“preference period”).
The Trustee believes that the Debtor made transfers of total $532,855.36 to Trejo during the preference period. Trejo was allegedly a creditor of the Debtor during these transfers.
The Trustee seeks to avoid and recover these transfers as preferential transfers under 11 U.S.C. § 547(b) and § 550(a). He also requests disallowing of any claim filed by Trejo until the transfers are repaid to the Debtor under 11 U.S.C. § 502(d).
Christopher R. Murray, Chapter 7 Trustee v. Jose Luis Trejo (In re Hidalgo County Emergency Service Foundation), AP No. 22-2009, US Bankruptcy Court for the Southern District of Texas.