In re Goss

Avoidance - Mortgage transfer was made on account of antecedent debt in part for purposes of preferential transfer claim.

A mortgage in the amount of $30,000 that was given in favor of the attorney who represented a debtor in state-court litigation was made on account of an antecedent debt with respect to the $20,913.75 in legal services that the attorney had performed as of the date of the mortgage transaction, for purposes of the Chapter 7 trustee's preferential transfer claim. The remaining $9,086.25 of the mortgage transfer, however, was not made on account of an antecedent debt, but, rather, constituted new value. It thus was not subject to avoidance.