by Brian J. Jackiw
Freeborn & Peters LLP; Chicago
On June 3, 2008, Hon. John H. Squires (U.S. Bankruptcy Court; N.D. Ill.) entered his opinion in an adversary proceeding, Grochocinski v. Schlossberg et al. (In re Eckert) 388 B.R. 813 (Bankr. N.D. Ill. 2008) (07-a-00450), brought by the chapter 7 trustee seeking to avoid the debtor’s transfers of real property to the named defendants. The trustee’s motion was, for the most part, granted. In his opinion, Judge Squires provided a straightforward and thorough guide to the methods and evidence needed to win fraudulent-transfer adversary actions, both by using tools under the Bankruptcy Code and state law.
Read the full article.
by Alan D. Lasko
Alan D. Lasko & Associates, P.C.; Chicago
It's not an uncommon scenario. A closely held corporation—let's call it Fishing Ventures Inc.—has more debt than the owners are able (or willing) to pay. The same or a very similar group of shareholders incorporates a new business—Go Fish Inc.—that engages in similar activities and uses the same officers and directors. In the alternative, at times, this new company business will purchase the assets of the first business as well. As a result, Fishing Ventures' creditors are not paid.
Read the full article.
by Cass S. Weil
Moss & Barnett, PA; Minneapolis
Have you encountered this situation? You represent a judgment creditor and, in the course of collecting a judgment, you discover that all of the judgment debtor’s assets are subject to a security interest in favor of the judgment debtor’s principal. You also discover that while the judgment debtor was insolvent, significant payments have been made to the insider on account of the secured debt. Can these payments be recovered? The answer is “yes” if the judgment debtor is located in one of the approximately 38 states and the District of Columbia that have adopted Subsection 5(b) of the Uniform Fraudulent Transfers Act. Subsection 5(b) states as follows:
(b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at the time, and the insider had reasonable cause to believe that the debtor was insolvent.
Read the full article.
Reference Material: Please click the following link below to view the accompanying Uniform Fraudulent Transfers Act chart arranged by state. Uniform Fraudulent Transfers Act Chart
