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