Nature of the Case
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Facts
Sandra and Brian Krasinski (Vs) agreed to guarantee a loan for Denochick, the debtor (D). D obtained the loan from NBOC. D made $1,713.35 in loan payments. in the year prior to filing bankruptcy. Vs received none of this money, but the payments reduced their exposure on the guarantee they gave to NBOC. The trustee (P) commenced an adversary action to avoid as a preference and recover from Vs the money D paid to NBOC. The court ruled that Vs appellants fell within the definition of 'creditors' and that they had failed to establish the applicability of the 'ordinary course of business' exception. Thus, the court concluded that P could avoid the $ 1,713.35 and recover that amount from Vs. This appeal resulted.
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