Midlantic National Bank v. Bridge
United States Court of Appeals for the Third Circuit
18 F.3d 195 (1994)
Frank Bridge (debtor) refinanced a properly recorded first mortgage from Midlantic National Bank (the bank) (creditor), but the bank failed to properly record the resulting second mortgage before Bridge filed for bankruptcy; the bank eventually recorded it, but only after the bankruptcy filing. The bank claimed an equitable lien in the property despite the delayed recording, but the bankruptcy court and district court both rejected that argument, and the bank appealed.
Whether a bankruptcy trustee may avoid a transfer of real estate property made by the debtor if the transfer would have been voidable by a bona fide purchaser of the property at the time of the bankruptcy filing.