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This section contains the nature of the case and procedural background.

A trial court had found that Halpern (D) had committed three acts of bankruptcy, and therefore she was determined to be legally bankrupt. One of the three acts of bankruptcy was a transfer with the intent to hinder and delay creditors. Schwartz (P), a trustee in bankruptcy, then brought suit to deny D a discharge in bankruptcy, because she had caused a transfer of debts with the intent to hinder, delay, or defraud creditors. P's motion for summary judgment was granted. D appealed.

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