GCK On Law
Advice of Attorneys Not Necessarily a Section 727 Defense
“[A]n explanation by a bankrupt that he had acted upon advice of counsel who in turn was fully aware of all the relevant facts generally rebuts an inference of fraud.” In re Zizza, 875 B.R. 728, 732 (1st Cir.2017) (quoting In re Mascolo, 505 F.2d 274, 277 (1st Cir....
Courts Split on Clawback of Prepetition Tuition Payments for Dependents (Bankruptcy Code Section 548(a)(1)(B))
Section 548(a)(1)(B) authorizes a trustee to avoid a transfer of an interest in property of the debtor under a theory of constructive fraud. That section provides: The trustee may avoid any transfer . . . of an interest of the debtor in property, or any obligation ....
Courts Split on Application of Factors for Stay Pending Appeal Under Bankruptcy Rule 8007(a)(1)(A)
The purpose of a stay pending appeal is to mitigate the damage that can be done before the matter is substantively resolved. Thus, in In re Heotis, 2017 WL 4310513 at *2 (N.D.Ill.), the court stated that motions to stay pending appeal are similar to preliminary...
Conflicting Approaches under Section 550 of the Bankruptcy Code Associated With Corporate Officers Who Misappropriate Corporate Funds
Pursuant to Section 550(a) of the Bankruptcy Code, once a trustee has successfully avoided a fraudulent transfer, he may recover the fraudulently transferred assets from either the initial transferee or “any immediate or mediate transferee” of the initial transferee. ...
Illinois’ New State Tax Lien Registry
Effective January 1, 2018, the Illinois Department of Revenue will begin maintaining its own public registry for notices of tax liens, ending the longstanding practice of recording the liens with the local county recorder’s office. The new laws were enacted as the new...