18 B 3134, 25 A 55
Chapter 7 trustee filed an adversary proceeding against the debtor, his wife and two mortgage companies.  The complaint alleged that the debtor had transferred an interest in his real property to his wife and granted two mortgages, all without court authority or the trustee’s knowledge.  Debtor and his wife filed a motion to dismiss, arguing that it was too late to avoid the transfer to her because it had occurred more than two years before the trustee filed his complaint.  HELD: The statute of limitations may bar a claim to avoid the transfer under 11 U.S.C. § 549 against debtor’s wife, but the debtor may be equitably estopped from raising this affirmative defense.  The transfer may also be void as a violation of the automatic stay, even though it was a voluntary act by the debtor.  The trustee’s claims for relief based on fraud, rescission and constructive trust may be barred by the statute of limitations as against debtor’s wife, but the debtor may again be equitably estopped from asserting this defense.  The motion to dismiss was granted in part and denied in part, and the trustee was granted leave to amend the complaint.