Case Summary:
11 U.S.C. § 553 does not create an independent right of setoff; it limits the use of setoff rights already available under state law. Before determining whether setoff was appropriate pursuant to § 553, state law right of setoff must first be established.  That issue is a proper one for determination by a state court. Whether the language in defendant Agri-Supply's bylaws is sufficient to grant it a lien under Wisconsin law is a proper matter for state court determination.

Statue/Rule References:
11 U.S.C. § 553 -- Setoff

Key Terms:
Setoff