Opinion
CHAPTER 7 CASE NO. 11-20999-NVA.
December 12, 2011.
STIPULATION AND CONSENT ORDER AVOIDING PREFERENTIAL TRANSFER
NOW COMES, Michael G. Rinn, Trustee of the Bankruptcy Estate of James Hill and Lois Hill ("Trustee") and Manufacturers and Traders Trust Company, ( "MT") by their signatures or the signatures of their respective counsel and hereby stipulate and consent to the entry of this Order in the following format
RECITALS
1.Michael G. Rinn, Esquire is the duly appointed Chapter 7 Trustee for James Hill and Lois Hill (Debtors).
2.Manufacturers and Traders Trust Company is and was a financial institution, authorized to do business in the state of Maryland, and at all times relevant hereto was a creditor of the Debtors.
3.On or about May 25, 2011, Debtors filed a Voluntary Petition under Chapter 7 of the United States Bankruptcy Code.
4.On or about May 12, 2011, within the ninety (90) day period preceding the filing of the Petition, MT recorded or caused to be domesticated and recorded a judgment lien in the Circuit Court for Howard County in the case Captioned Manufacturers and Traders Trust Company v. Metropolitan Steel Inc. et al Case Number 13C55065577, (the "MT Judgment ") to secure the confessed judgment entered in favor of MT and against the Debtors in the Circuit Court for Frederick County Maryland in Case Number 10C11000522 on March 14, 2011.
5. The recordation and domestication of the judgment against the Debtors in the Circuit Court for Howard County, constituted a transfer of an interest of the Debtors property, to wit the real property and improvements in Howard County known as 17810 Old Frederick Road, Mount Airy, Maryland 21771, within the ninety (90) day period preceding the filing of the Petition and such judgment lien is avoidable by the Trustee pursuant to the provisions of 11 U.S.C. Section 547.
6. Based upon the foregoing, the Trustee and MT counsel and hereby stipulate and consent to the entry of this Order in the following format:
UPON CONSIDERATION of the consent of the parties to the entry of an Order in the following format, as evidenced by their signatures or the signatures of their respective counsel, and good cause appearing it is hereby;
ORDERED, that the Consent Motion to Approve Stipulation and Consent Order Avoiding Preferential Transfer shall be and hereby is GRANTED: and it is further
ORDERED,
A. The MT Judgment lien imposed against the Debtors' real property and improvements in Howard County known as 17810 Old Frederick Road, Mount Airy, Maryland 21771 entered in the Circuit Court for Howard County in the case Captioned Manufacturers and Traders Trust Company v. Metropolitan Steel Inc. et al Case Number 13C55065577, shall be and the same is hereby avoided and declared null and void as to the interests of the Trustee; and
B. M T, for purpose of distribution pursuant to the provisions of 11 U.S.C. Section 726, shall be allowed a general, non-priority, unsecured claim in this proceeding in the amount of $1, 499, 606.53; and the claim of MT as filed herein as Claim No 4, shall be deemed amended to establish a general, non-priority, unsecured claim in this proceeding in the amount of $1, 499, 606.53.
C. Subject to further notice and Court Approval, the Trustee shall be and hereby is authorized to offer to sell at private sale or public auction, free and clear of the MT Judgment, the property of the Debtor described as real property located and known as 17810 Old Frederick Road, Mount Airy, Maryland 21771. The Trustee is hereby authorized to execute, deliver and record, or cause to be recorded, among the records of the Circuit Court for Howard County and records of the Circuit Court for Frederick County any and all instruments, or documents necessary to cause the judgment lien of Manufacturers and Traders Trust Company imposed against the Debtors' real property and improvements in Howard County, including but not limited to the real property known as 17810 Old Frederick Road, Mount Airy, Maryland 21771, to be avoided, released and declared null and void as to the interests of the Trustee.