Tuesday, November 25, 2008

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.

Thursday, November 20, 2008

new bill updates

Mortgage Foreclosure Act
Senate Bill 2725 (Haine, D-Alton; Harris, D-Chicago) creates a 90-day stay in Illinois courts of action in any pending mortgage foreclosure. It also prohibits the filing of any new mortgage foreclosure action during those 90 days. The 90 days begins on the Governor's signature. It is on second reading in the House. It must pass the House and go back to the Senate for concurrence with House Amendment No. 1 before it is sent to the Governor. The House meets today and for two days in January before adjourning for a new General Assembly.