In similar circumstances, courts have held such restitution agreements establish a debtor-creditor relationship. Rajala v. Bowlus School Supply, Inc. (In re Kirk), 38 B.R. 257, 260 (Bankr.D.Kan. 1984); Bakst v. Atlantic Nat'l Bank (In re Kayajanian), 27 B.R. 711, 712 (Bankr.S.D.Fla. 1983); Button v. Sheridan Oil Co. (In re Button), 18 B.R. 171, 172 (Bankr.W.D.N.Y. 1982). Payments made in accordance with such restitution agreements are payments made to a creditor on an antecedent debt and may be preferences if the other elements of § 547 are satisfied. Rajala v. Bowlus School Supply, Inc. (In re Kirk), 38 B.R. at 259-60; Bakst v. Atlantic Nat'l Bank (In re Kayajanian), 27 B.R. at 712.
1984); Arizona v. Magnifico, 21 B.R. 800 (Bankr.D.Ariz. 1982); In re Button, 8 B.R. 692 (Bankr.W.D.N.Y. 1981), later proceeding, Button v. Sheridan Oil Co., 18 B.R. 171 (Bankr.W.D.N.Y. 1982); People v. Calhoun, 145 Cal.App.3d 568, 193 Cal.Rptr. 394 (1983); People v. Washburn, 97 Cal.App.3d 621, 158 Cal.Rptr. 822 (1979) with, e.g., Becker v. County of Sacramento (In re Hackney), 83 B.R. 20 (Bankr.N.D.Cal. 1988); People v. Taite, 76 B.R. 764 (Bankr.C.D.Cal. 1987); Rajala v. Bowlus School Supply, Inc. (In re Kirk), 38 B.R. 257 (Bankr.D.Kan. 1984); Blast v. Atlantic National Bank (In re Kayajanian), 27 B.R. 711 (Bankr.S.D.Fla. 1983). Accordingly, the Court concludes that, regardless of whether restitution should be analyzed as a debt, criminal restitution is excepted from avoidance under section 547. The trustee in bankruptcy has therefore failed to state a claim, and the decision of Chief Bankruptcy Judge King is affirmed.
Id. at 511.Rajala v. Bowlus School Supply, Inc. (In re Kirk), 38 B.R. 257 (Bankr.D.Kan.1984).Id. at 260.
Hence, § 547 plainly includes the transfer from Sunnyside to Capital albeit Elkhart Beverage served as the conduit in making the payment for Sunnyside's benefit. See Rajala v. Bowlus School Supply, Inc. (In re Kirk), 38 B.R. 257, 259 (Bankr.D.Kan. 1984). The arguments submitted by the parties indicate that the parties have no real dispute concerning the first four elements of § 547(b).
The defendant has not disputed the trustee's evidence that the debtors were insolvent. Failure to rebut the presumption was enough for the court in Rajala v. Bowlus School Supply ( In re Kirk), 38 B.R. 257 (Bankr.D.Kan. 1984) to find the debtor insolvent. Likewise in Clay v. Traders Bank ( In re Briarbrook Development Corporation), 11 B.R. 515, 519 (Bankr.W.D.Mo. 1981) the court stated "Thus in the absence of any evidence on the issue of insolvency, the trustee must prevail."