Lawson v. Barden (In Re Skalski)
This adversary proceeding, initiated by a Chapter 7 Trustee, involved the Debtor, Theresa H. Skalski, who transferred her home in Depew, New York, to her daughter, Christine A. Barden, and son-in-law in 1995. The Debtor took a $35,000 note for the property, which she later forgave. The Trustee sought to void this transfer under New York Debtor and Creditor Law § 273, arguing it was a fraudulent transfer made without fair consideration while the Debtor was insolvent. The Defendants contended that the loan forgiveness constituted consideration for a promise of future support, and they claimed offsets for support provided and property maintenance. The court, citing precedent like Kotowski, ruled that a promise of future support is not fair consideration and rejected the Defendants' claims for offsets related to property maintenance, as they owned the property and collected rent from the Debtor. Finding the Debtor insolvent at the time of the transfer and the absence of fair consideration, the court granted summary judgment to the Trustee for $35,000 plus costs.