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PALMER CLAY PRODUCTS CO. V. BROWN, 297 U. S. 227 (1936)

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U.S. Supreme Court

Palmer Clay Products Co. v. Brown, 297 U.S. 227 (1936)

Palmer Clay Products Co. v. Brown

No. 125

Argued December 13, 1935

Decided February 10, 1936

297 U.S. 227

Syllabus

Whether a payment to a creditor by an insolvent debtor on an overdue debt, within four months of the debtor's bankruptcy, operates as a preference, voidable by the trustee, under § 60(a), (b), of the Bankruptcy Act, depends not upon what would have been its effect on creditors if the debtor's assets had been liquidated and distributed at the time of the payment, but upon its actual effect determined in the ensuing bankruptcy. P. 297 U. S. 228.

290 Mass. 108, 195 N.E. 122, affirmed.

Certiorari, 296 U.S. 556, to review a judgment recovered by Brown as trustee in bankruptcy. The judgment was entered in the court below pursuant to a rescript from the Supreme Judicial Court of Massachusetts.





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