11 U.S.C. § 551
Automatic preservation of avoided transfer
Any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title, or any lien void under section 506(d) of this title, is preserved for the benefit of the estate but only with respect to property of the estate.
Notes of Decisions
Cited in 415
cases (40 in the last 5 years), 1980–2026 · leading case: LPP Mortg., Ltd. v. Brinley, 547 F.3d 643 (6th Cir. 2008).
LPP Mortg., Ltd. v. Brinley, 547 F.3d 643 (6th Cir. 2008). “On October 20, 2005, LPP filed a motion to reopen the bankruptcy case and a motion pursuant to 11 U.S.C. § 551 to preserve for the benefit of the bankruptcy estate the unencumbered equity in Brin-ley’s Property that was created by virtue of the partial avoidance of LPP’s lien.”
Lassman v. OneWest Bank, FSB (In Re Swift), 458 B.R. 8 (Bankr. D. Mass. 2011). “§ 544 (a)(3), (ii) preserve the avoided Mortgage for the benefit of the estate pursuant to 11 U.S.C. § 551 , and (iii) establish the Mortgage’s priority over the Debtor’s Homestead.”
Morris v. Vulcan Chem. Credit Union (In Re Rubia), 257 B.R. 324 (10th Cir. BAP 2001). “" 11 U.S.C. § 551 ; see S.Rep. No. 989, 95th Cong.”
In Re Mahaner, 34 B.R. 308 (Bankr. W.D.N.Y. 1983). “In this regard, 11 U.S.C. § 551 preserves the avoided lien for the benefit of the estate and even as to exempt property 11 U.”
In Re Gerald Dale Burns & Linda Jane Burns, Debtors. Andrew W. Suhar v. Gerald Dale Burns & Linda Jane Burns, Imc Mortg. Co., 322 F.3d 421 (6th Cir. 2003). “11 U.S.C. § 551 . B. Avoidance and Recovery The Trustee properly avoided the mortgage for being improperly witnessed.”
Brian Bash v. Textron Fin. Corp., 834 F.3d 651 (6th Cir. 2016). “§ 550 (a), and 11 U.S.C. § 551 , and equitable subordination and disallowance claims.”
In Re: Stergios Messina v., 687 F.3d 74 (3rd Cir. 2012). “1 , Ap-pellee sought to avoid the National Penn Bank mortgage lien on the residence, and to preserve the value of the avoided mortgage for the benefit of the estate, pursuant *77 to 11 U.S.C. § 551 . 3 The Trustee did so by filing a “Complaint to Avoid Mortgage and Other Liens,”…”
Matter of DeLancey, 94 B.R. 311 (Bankr. S.D.N.Y. 1988). “The trustee in bankruptcy in this Chapter 7 case seeks to stand in the shoes of an avoided unperfected senior attachment lien- or, and to obtain priority pursuant to 11 U.S.C. § 551 over a subsequently perfected junior secured claim held by United States Fidelity and Guarantee…”
Dewsnup v. Timm, 502 U.S. 410 (1992). “The feared "windfall" to the debtor may be prevented by 11 U. S. C. § 551 , which preserves liens avoided under § 506(d) and other provisions of the Code "for the benefit of the estate," i.”
Tennessee Mach. Co. v. Appalachian Energy Indus., Inc. (In Re Appalachian Energy Indus., Inc.), 25 B.R. 515 (Bankr. M.D. Tenn. 1982). “For the reasons stated below, the court finds that the bank’s security interest in after-acquired property is superi- or to the unperfected purchase money security interest preserved by the trustee pursuant to 11 U.S.C.A. § 551 (West 1979). The following constitute findings of…”
Carpenter v. Fanaras (In Re Fanaras), 263 B.R. 655 (Bankr. D. Mass. 2001). “5 Realty Trust”) to the Willow Construction Realty Trust, then from Willow Construction Realty Trust to Joseph Fa-naras, and then from Joseph Fanar-as to Myrna Davis, are hereby avoided and, pursuant to 11 U.S.C. § 551 , preserved for the benefit of the estate.”
Degiacomo v. Traverse, 753 F.3d 19 (1st Cir. 2014). “Second, his right of preservation under 11 U.S.C. § 551 automatically preserves the benefit of the avoided interest for the estate by “put[ting] the estate in the shoes of the creditor whose lien is avoided.”
— 11 U.S.C. § 551(a) — 1 case
In Re H.F. Radandt, Inc., 160 B.R. 323 (Bankr. W.D. Wis. 1993).
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