In Re Miguel Selwyn Thomas, Debtor. Byron Z. Moldo v. Arvis Ash

Byron Moldo, the Chapter 7 Trustee (“Trustee”), appeals a decision of the Bankruptcy Appellate Panel (“BAP”) reversing the bankruptcy court’s determination that the bankruptcy debtor, Miguel Selwyn Thomas (“Debtor”), fraudulently transferred a condominium to his mother, Arvis Ash (“Ash”), before filing for bankruptcy. We have jurisdiction pursuant to 28 U.S.C. § 158 (d). Because we conclude that the BAP erroneously excluded from its review the relevant findings underpinning the bankruptcy court’s judgment, we vacate and remand so that the BAP may review the bankruptcy court’s judgment based upon the full record.

BACKGROUND

Debtor acquired legal title to a condominium located in Van Nuys, California in 1997, and executed a quitclaim deed conveying the condominium to Ash in 2000. The quitclaim deed was recorded on June 7, 2000. On February 28, 2001, Debtor filed a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code. Trustee subsequently filed an adversary proceeding against Ash, seeking to set aside the transfer of the condominium as fraudulent under California’s fraudulent transfer laws.

The bankruptcy court conducted a one-day bench trial on…