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Williamson v. Paris
23-05020
Bankr. D. Kan.
Mar 11, 2025
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Background:

  • Weylin Paris purchased real property from his grandfather in Kansas and refinanced it; his brother Brandon Paris lived there with him and later took over the mortgage and occupancy.
  • In 2013, as Weylin prepared to marry Alicia, the brothers agreed that Brandon would pay Weylin $8,000 and assume the mortgage; however, title remained with Weylin until a quit claim deed (QCD) transferred property to Brandon in 2017.
  • The 2017 transfer was prompted by family estate planning, not creditor pressure, and was formalized with the help of the family attorney.
  • When Weylin and Alicia filed Chapter 7 bankruptcy in 2022, the Trustee sought to avoid the 2017 transfer as a fraudulent conveyance under federal and Kansas law, using the IRS as a triggering creditor.
  • Brandon continued living on the property, making all mortgage payments after 2013; the deed and mortgage were never assigned to him, but the quit claim deed was publicly recorded.
  • The court held a trial to resolve whether the property transfer was fraudulent or whether Brandon provided reasonably equivalent value.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Was the 2017 QCD fraudulent under 11 U.S.C. § 544(b) and related statutes? Trustee: Transfer was to insider, for no consideration, while insolvent and with pending lawsuits, thus actual or constructive fraud. Brandon: Provided consideration by paying $8,000 and mortgage; transfer was a family matter, not intended to defraud creditors. Not fraudulent; Trustee failed to prove actual or constructive fraud.
Did Brandon provide reasonably equivalent value for the property? Trustee: No equivalent value provided; QCD stated no consideration, property worth more than debt assumed. Brandon: $8,000 cash and all mortgage payments satisfied the requirement; property value close to mortgage amount. Yes, Brandon provided reasonably equivalent value.
Was there actual intent to hinder, delay, or defraud creditors? Trustee: Factors (insider transfer, pending debt, lack of consideration, insolvency) show intent to defraud. Brandon: Transfer long planned, not concealed, no contemporaneous creditor threat, no intent to defraud. No intent to defraud; factors do not support plaintiff's claim.
Was the transfer timely challenged within the statute of limitations? Trustee: Action timely under federal statutes. Brandon: Claimed earlier equitable transfer in 2013, making suit untimely. Transfer occurred in 2017; action timely.

Key Cases Cited

  • None with official reporter citations provided or relied upon for substantive legal rules in the opinion.
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Case Details

Case Name: Williamson v. Paris
Court Name: United States Bankruptcy Court, D. Kansas
Date Published: Mar 11, 2025
Docket Number: 23-05020
Court Abbreviation: Bankr. D. Kan.