Section 6.21 De Minimis Transfers

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

8. (§6.21) De Minimis Transfers

Under 11 U.S.C. § 547(c)(8), there is a defense for creditors of individual consumer debtors, excepting from avoidance transfers in the aggregate of less than $600. Section 547(c)(8).

BAPCPA creates a new defense for small preferences, available to creditors of nonconsumer debtors. Current § 547(c)(9), effective for cases commenced after October 17, 2005, excepts from avoidance all transfers in which the aggregate value of property that constitutes, or is affected by, the transfer is less than $5,000, and it applies to creditors of debtors whose debts are not primarily consumer debts.

Interpreting § 547(c)(8), courts are divided on the issue of whether a...