United States Seventh Circuit

In debtors' attempt to avoid a tax deed to their home that was issued to the taxpayer within the time limits of 11 U.S.C. section 548, district court's affirmance of bankruptcy court's dismissal of the debtors' section 548 fraudulent transfer claim in determining that the tax sale of their home was perfected upon the expiration of the period of redemption is reversed as, under Illinois law, a taxpayer's property interest is not perfected against a bona fide purchaser (BFP) until the recording of the tax deed. Prior to the deed, even though the period of redemption may have expired, the debtor still has title to an ownership rights in the property and so potentially could convey to a BFP a property interest superior to the taxbuyer's interest.

Appellate Information

• Argued 04/13/2010
• Decided 07/27/2010
• Published 07/27/2010

Judges

• TINDER

Court

• United States Seventh Circuit

Counsel