Stratton v. Lawson

Citations

• 27 Wash. 310
• 67 P. 562
• 1902 Wash. LEXIS 393

Syllabus

<p>BANKRUPTCY-PREFERENCES-CREDITOR’S KNOWLEDGE OF INSOLVENCY.</p> <p>The fact that a debtor was. adjudged á bankrupt within a period of less than four months after giving a mortgage upon his real estate for a loan would not authorize the trustee in bankruptcy to set aside the conveyance as a fraudulent preference, when at the time of the transaction both parties believed the mortgagor to be solvent, his assets being apparently considerably in excess of his liabilities, and an investigation made by the mortgagee showed that the mortgagor’s business sales amounted to from $25,000 to $30,000 per month, yielding a net profit of from $3,000 to $4,000.</p>