Preferential payments while insolvent – must prove insolvent at time of payment

Civil – Bankruptcy
Baldi v. Samuel Son & Company, Ltd., Nos. 08-1022 & 08-1136 Cons. (11/24/08). Appeal, N.D. Ill. E. Div. Aff’d.
Dist. Ct. did not err in denying Trustee’s request to recover several payments that debtor had made within four years prior to declaring bankruptcy. While Trustee attempted to establish dates of debtor’s insolvency as time between beginning and end of start-up entity, Trustee failed to show that debtor was insolvent at time start-up was formed. Moreover, Trustee improperly failed to discount certain contingent liabilities when valuing start-up company.

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Terrance Leeders

Chicago Bankruptcy Attorney, husband, father, Cubs fan.

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