In Re Continental Capital & Credit, Inc.

MEMORANDUM OF DECISION

I. Introduction

Chapter 7 Trustee, Charles W. Daff (“Trustee”) filed an adversary complaint against Defendant, Regal Recovery Agency, Inc. (“Regal Recovery”) seeking to avoid and recover $9,904.50 of alleged preferential transfers pursuant to 11 U.S.C. § 547 . Regal Recovery filed a motion to dismiss, or in the alternative, for judgment on the pleadings. Regal Recovery contends that the statute of limitations contained in 11 U.S.C. § 546 (a)(1) runs from the commencement of a Chapter 11 case regardless of whether the case is subsequently converted to a case under Chapter 7 and a permanent trustee is appointed.

II. Statement of Facts

Continental Capital & Credit filed a petition for relief under Chapter 11 of the Bankruptcy Code on March 2, 1989. The case was subsequently converted from Chapter 11 to Chapter 7 on May 2, 1990. On May 4, 1990 an interim Chapter 7 trustee was appointed. On July 3, 1990, at the first meeting of creditors held pursuant to 11 U.S.C. § 341 (a), an election was held and Charles W. Daff was appointed as permanent trustee in place of the interim trustee.

On July 1, 1992, the Trustee filed an adversary complaint against Regal…