assignment was effective when made, which was outside the preference period, and that assignments do not need to be in writing to be enforceable. Therefore, the court concluded that the debtors held the insurance proceeds in trust for Belfor and granted Belfor’s motion for summary judgment.

This means that plaintiff was entitled to insurance proceeds that debtors received before they filed for bankruptcy but failed to pay to the plaintiff as promised. It also means that a prepetition state court judgment precluded the trustee from asserting that the insurance proceeds were property of the debtors’ estate.

Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave Bldg A-1 Suite 1125 Unit 58 Alhambra, CA 91803