Section 6.10 Time of Transfer

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

E. (§6.10) Time of Transfer

2015 SUPPLEMENT (§6.10)

The transfer, to be avoided, must occur on or within 90 days of the filing of the petition or on or within 1 year of the petition date if to an insider. 11 U.S.C. § 547(b)(4).

Whether the preference period is calculated by counting forward from the date of the transfer or backward from the petition date can have different results, particularly if Federal Rule of Bankruptcy Procedure 9006, which provides for an extension of the deadline for action when the last day of a computed period falls on a Saturday, Sunday, or legal holiday, is applied. The courts are divided on these issues. SeeIn re Greene, 223 F.3d 1064, 1072–73 (9^th Cir. 2000) (citing cases). The better-reasoned decisions hold that Rule 9006(a) does not apply to calculation of the 90-day preference period. SeeGreene,
223 F.3d 1064 (transfer that occurred 91 days before the petition date
did not fall within the preference period, even though the 90^th day fell on a Sunday); In re Ross, 193 B.R. 902, 905 (Bankr. W.D. Mo. 1996) (Koger, C.J.) (§ 547(b)(4) establishes a substantive right that cannot be enlarged by Rule 9006(a); likewise Rule 9006(a) cannot be applied to extend the 30-day perfection window in...