Soto-Rios v. Banco Popular de Puerto Rico, No. 10-2270 (1st Cir. 2011)Annotate this Case
Mortgage deeds executed by the debtors three years earlier were still pending recordation when they filed for Chapter 11 bankruptcy. Debtors sought to avoid the mortgages and to prevent any post-petition actions that would perfect them 11 U.S.C. 362(a)(5), 544(a), 547(b). The bankruptcy court ruled in favor of the lender. The district court and First Circuit affirmed. Debtors failed to establish the necessary elements of a preferential transfer.