You are the bankruptcy trustee for Debtor’s Chapter 7 bankruptcy estate. Debtor filed a petition on December 1, 2012. While going through Debtor’s records, you determine that Debtor had been insolvent since June of 2012. You also find the following transfers:

A. On November 1, 2012, Sears retained a purchase-money security interest in a table saw purchased by Debtor for use in his business. Debtor remains in possession of the table saw and Sears has not filed a UCC-1 covering the table saw.

B. On November 29, 2012, Best Buy retained a purchase-money security interest in a home theatre system that cost $500 (purchased by Debtor on the same day).

C. On October 31, 2012, Debtor granted a security interest in all of his inventory to First Bank to secure a previously unsecured loan that First Bank gave Debtor last year.

D. On June 1, 2012, Debtor grants a security interest in his car in exchange for a loan of $10,000. Due to a clerical error, Second Bank failed to have its lien noted on the title to Debtor’s car (as required by the applicable certificate of title act).

Which of these transfers may you, as bankruptcy trustee, avoid?

1. A, B, C, and D

2. B, C, and D

3. A, C, and D

4. C only

5. D only