avoidance of personal property transfer

[newbie2]

My question would be not "can you?" but should you?

I have to tell you, this is the first time I've seen a trustee in here asking questions.

[frogger]

I see at least two reasons that this is a preferential payment.

1. No present consideration.
2. No perfection of the transaction.

I agree that it is not fraud, however it is preferential, and therefore would be voided by the trustee.

[HRay]

Greetings, have read hundreds of posts here and could not fine one exactly like this.

I now find myself practicing BK law, very new to this.

Here is situation:
16 months prior to filing chapter 7 the debitor transferred a vechicle to his father-in-law for an antecedent debt. vehicle worth 8K. This vehicle in California is not required to have a certificate of title issued with it because it is one of those PTI registered vehicles, (an enclosed car toy hauler) and dmv does not issue titles unless specifically asked for. it does however have to be registered in Calif prior to being usde upon public roads.

the debitor gave the registration card, and the father-in-law took possession in month 16 prior to filing. the debitor notified his insurance company in month 15 to delete it from insurance, the receiver added it to his insurance in month 14 prior to filing. the debitor filed a release of liability with dmv also in month 16 prior to filing. the receiver did not use the vehicle on public lands and therefore did not register it with dmv.

I as the trustee now want to avoid this transfer of personal property because it was not perfected with dmv. I have absolutely no evidence of fraud, they provided cancelled checks to show where the father-in-law paid medical bills on the debitors behalf several years prior to this transfer.

Can I successfully argue to the courts that since this was not recorded I can stand in the shoes of a BFP to add this property to the estate since it was not perfected with dmv.

Around the office we are having differences of opinion.